Moneywise users want savings incentives to be announced in the Budget
Incentives for savers is what the majority (28%) of Moneywise.co.uk users want to see announced by Chancellor Philip Hammond in tomorrow’s Budget, according to our latest poll results.
The scrapping of buy-to-let tax changes follows this with 23% of the 1,036 people who voted selecting it. The amount of tax relief landlords can claim on mortgage payments will fall from the tax rate they currently pay to the basic rate of 20% in phases this April.
At the other end of the housing scale, only 3% want new or improved schemes to help first-time buyers. See our guide to Mortgage schemes for first-time buyers.
When it comes to pensions, 15% of those who voted said the most important issue for them is a commitment to keep the triple lock, which sees pensions rise each year by the higher of inflation, the increase in average earnings or 2.5%.
However, a recent report from the Work and Pensions Committee warns that keeping the triple lock will push the state pension age beyond 70.
Only 4% of those who voted said a promise to keep the higher rate of tax relief on pensions was their main concern.
Meanwhile, 9% want a further freeze to fuel duty. The tax has remained at 57.95p per litre since March 2011.
See the pie chart below for the full results.
The tax levied on the total value of your estate after you die. IHT has to be paid by the beneficiaries of your estate before they can receive any of the money from it. The money can’t be taken from the value of the estate _– it has to be paid before any money can be released. There is an IHT threshold – known as the “nil-rate band” – below which no tax is levied (£325,000 in 2011/12). Any amount above the nil-rate band is subject to tax at 40%. If your estate totals £600,000, there is no tax on the first £325,000; however your estate will pay 40% tax on the remaining £275,000, a total of £110,000. Prudent tax planning can reduce your IHT liability, so always consult a specialist solicitor.
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).
The catch-all term applied to investors who buy properties with the sole intention of letting them to tenants rather than living in them themselves, with the proceeds from the let usually used for the repayment of the mortgage. Buy-to-let investors have to take out specialised mortgages that carry higher interest rates and require a much bigger deposit than a standard mortgage. Other expenditure can include legal fees, income tax (on the rental profits you make), capital gains tax (if you sell the property) and “void” periods when the property is unlet.