Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
War and Young Americans - 27th May 19
Stock Market Rally Over – Downtrend Resumes - 27th May 19
How to Choose a Good Online Estate Agent - 27th May 19
Bitcoin Price Stalls Near $8100 - 27th May 19
UK EU Election Results, Brexit Party Victory, Labour and Tory Bloodbath, UKIP and ChangeUK Die - 27th May 19
The Three M's of Hyperinflation : Milosevic, Mugabe, And Maduro - 26th May 19
Global Multi-Market / Asset Charts Review - 26th May 19
An Oil Shock Could Be the Black Swan That Finally Drives Gold Higher - 26th May 19
Brexit Party Forces Theresa May to Resign, Boris Johnson Next Tory Prime Minister? - 26th May 19
IBM - Investing in AI Machine Intelligence Stocks - 25th May 19
Seasonal Dysfunction: Why Generations of Gold and Silver Investors Are Having Such Difficulty - 25th May 19
Employment - The Good and the Bad of Job Automation - 25th May 19
Gold Mining Mid-Tier Stocks Fundamentals - 25th May 19
Buy This Pick-and-Shovel 5G Stock Before It Takes Off - 25th May 19
China Hang Seng Stocks Index Collapses and Commodities - 24th May 19
Costco Corp. (COST): Finding Opportunity in Five Minutes or Less - 24th May 19
How Free Bets Have Impacted the Online Casino Industry - 24th May 19
This Ultimate Formula Will Help You Avoid Dividend Cutting Stocks - 24th May 19
Benefits of a Lottery Online Account - 24th May 19
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

New UK Government Tax Cut, Annual Tax Free Allowance to Rise to £10,000

Politics / Taxes May 11, 2010 - 05:44 PM GMT

By: Nadeem_Walayat

Politics

The New Conservative / Lib-Dem coalition UK government is expected to cut UK taxes for most tax payers by £705 per year as part of coalition deal. The Lib-Dem Tax cut policy to be phased in over x years will take the form of the annual tax free allowance rising from £6,470 to £10,000 which is aimed at lifting the low paid totally out of income tax, however it will at the same time benefit all tax payers.


The £17 billion tax cut to be phased in will be financed by a series of separate tax rises that will hit the higher paid who will finance the tax cut, details of which will be announced in the emergency budget within 50 days.

Effect of the Lib Dem Tax Cut.

Gross Earnings Current Income Tax Tax New Income Tax Better Off by
£10,000
£705
£0
+£705
£15,000
£1,705
£1,000
+£705
£20,000
£2,705
£2,000
+£705
£25,000
£3,705
£3,000
+£705
£30,000
£4,705
£4,000
+£705
£50,000
£9,930
£8,520
+£1,410

 

  • The above excludes NI tax which is expected to rise, i.e. average basic rate tax payers will thus see little overall change.
  • Excludes higher rate tax rises still to be announced.
  • Excludes inpact of stealth tax rises such as VAT.
  • Implementation is pending details of how the tax cut will be phased in, i.e. over how many years.

Once the exact details of all tax proposals have been announced in the emergency budget within 50 days, then it will become clear how far the overall tax burden for those earning more than about £15,000 per year will rise, and significantly so for the higher paid.

Source: http://www.marketoracle.co.uk/Article19406.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Dr Ray
12 May 10, 11:42
personal allowance for the higher paid

Don't forget that the last budget abolished personal allowances for the higher paid (£100K +)so they may not be better off at all with the new proposed threshold.


Nadeem_Walayat
12 May 10, 19:34
UK Taxes

Yes a lot of tax rises are due to hit which ensure that in the end only those that earn UNDER £15k will be better off.

Offcourse even these may see a cut if tax credits are also cut.


mrs halls
13 May 10, 19:10
tax allowance

yes the income for lower paid will go up with the tax allowance but then taken away in loss of certain benefits because it will be counted as extra income , leaving them no better off , but as it's for all the higher paid will benefit from the rise. How is this fair?


Nadeem_Walayat
13 May 10, 20:17
Tax allowances and low paid.

Hi

Benefits such as tax credits are paid on the basis of gross earnings, so it should not result in loss of benefits to the low paid.

The higher paid will be hit hard by tax rises that far outweigh the benefits from the tax allowance change as the government will raise approx £35 billion from tax rises.

Once the new government has revealed more data I will try and estimate what the net overall tax picture will mean.


mrs halls
15 May 10, 19:57
benefits after tax allowance starts

Hi Thanks for your reply , Housing benefit and Council tax benefit are worked out on your income not gross amount , so unless the goverment put up the amount needed to live on, the low paid will not be any better off.


aden
09 Sep 10, 10:53
£10,000 tax allowance

Why do they make the promise that it will happen in X years and not be honest enough to give a date, Promises can be broken and carrots can go rotten before you eat them. Many of my colleagues voted either LibDem or Tory, Now that their employment and lifestyles are under threat they now regret not voting Labour. If most people are honest they would say the same, Me thinks.


Nadeem_Walayat
09 Sep 10, 17:22
Labour

Labour would have bankrupted Britian, where even a £100k tax free allowance would be worthless.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules