Cover Story
“If investors are concerned
about a change of
government, then higher
taxes may be foremost in
their thoughts”
Another potential wrinkle is a
change of government. It is possible
that disillusionment with the current
government prompts a general election
and ushers in a Labour government
with a wealth-redistribution agenda.
Kay Ingram, director of public policy
at advisory group LEBC, says: “If
investors are concerned
about a change of
government, then
8 / 9
higher taxes may be foremost in their
thoughts. Labour has been clear it will
increase taxes on the rich, which they
define as earning £80,000 and above.
Anyone with income in the higher rate
tax bracket would be well advised to use
up tax allowances for pension saving.
Use the three-year carry forward
allowance and maximise employer
contributions, just in case higher rate
tax relief disappears in future.”
“Capital gains tax must also be a
target of reform for any incoming
government. With a top rate of 20
per cent on investments and 28
per cent on property, it is one of
our lowest tax rates. Using the CGT
tax-free allowance of £11,700 and
realising gains is a must. Over the
past year, many investors in shares
may also have seen losses, which can
be offset against gains and carried
forward indefinitely.”
House prices
The UK housing market has hit a soft
patch. The most recent Nationwide
report showed house price growth
at a standstill and in areas such as
London, it is in decline, particularly
at the top end. The withdrawal of
foreign buyers from the market has
created a trickle-down effect just as
confidence has taken a knock.
The outlook for UK housing in
the event of a no-deal Brexit is not
FE TRUSTNET