Money Clinic with Claer Barrett How “painful” will the Budget be for your finances?
Sep 3, 2024
Dan Neidle, founder of Tax Policy Associates and former head of tax at a leading law firm, dives into the looming challenges of the UK budget. He discusses how the £22bn financial gap could lead to taxing changes and the potential impact on ordinary investors. The conversation tackles misconceptions about taxation and emphasizes the need for reforms that support lower-income individuals. Neidle critiques current tax structures and explores the viability of wealth taxes, advocating for fairness and economic growth.
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Tax Misconceptions
- Many people misunderstand basic tax concepts like tax brackets.
- This misunderstanding can lead to poor financial decisions, like refusing promotions.
Tax Focus Problem
- The UK tax system is overly focused on revenue raising and tax cuts.
- This narrow focus hinders growth and leads to a complex, unprincipled system.
Pension Tax Relief Changes
- A flat-rate pension tax relief could discourage higher earners from contributing to pensions.
- This is because they would receive less tax relief while still being taxed heavily upon withdrawal.