the
so
please
eyes
and
so
please
contributions would plug 15 billion of the deficit in Britain's finances. It said that
a small measure could add up to a sizeable tax grab by Ms Reeves. Pension tax relief
is known to be an error. Ms Reeves, as well as other chancellors, have considered cutting
to raised revenue. So this is something she did in 2016. So she will give a flat rate
of pensions tax relief of 33%, therefore taking 7% from the high earners and giving it to
the basic rate taxpayers. So it says here, welcome boost for basic rate taxpayers and
a cut in the saving subsidy for higher earners. Secure Stump has already admitted that the
budget will be painful, but not everyone will feel that pain. In a statement last month,
Labour ruled out increasing taxes on working people. Well, what is the definition of working
people? I think the definition of a working people is anybody who is earning minimum wage
or less or is a union member or is in the Labour Party. So here's a graph here that
another thing is that because the tax relief for getting earnings will not go up in line
with pensions, then lots of pensions will be taxed from the state. I mean, this is effectively
ludicrous because pensioners should be protected. If they're well and able to work, they should
pay the relevant tax. But I think having a pension which is paid out and then you pay
tax on it, I mean, you should probably pay tax on your other pensions, but effectively
you're going to have to pay a lot of tax which would either come from other pensions,
either crude savings or the state pension. To address the 20 billion bill, the bank said
that the Chancellor would likely scrap certain inheritance tax reliefs, reform capital gains
tax and auto tax reliefs on pension contributions. So savers currently enjoy 20% tax relief on
pension contributions with an extra 20% available for higher earners. A flat rate of relief
would effectively abolish the additional relief. Now I've also heard that also you can take
money out of your pension pot. I think it's 25% tax free. And I think that there's going
to be a ceiling on this. It's either 100,000 or 150,000. So raising capital gains taxes
to be equal with income tax, which I suppose is fair, but you don't have the risks and
people who don't have a job usually have the capital gains. In addition, additional revenue
for the excess according to Treasury analysis, scrapping inheritance tax on relief over
states worth under 325,000 would raise 1.8. Scrapping inheritance tax relief on the states
worth under 325 would raise 1.8 billion. Well, that's not good, is it? In an interview with
the Sunday Times in 2006, Miss Reed was asked which aspect of the tax system she would change
and said, pension tax would make it fairer. Pension tax relief seems to be geared towards
the highest earners. Well, you're paying the most tax, so why shouldn't you get the main
relief? If you're not paying a great deal of tax, why are you getting more relief? And
the scrapping of inheritance tax relief on the states worth under, I don't know, I mean,
the thing is that that means that everybody has to pay. That's a hard nut to crack. Reeves
wrote in an article in the Times eight years ago that the current tax relief system was
an unjust and ill-judged use of the nation's strained finances. Well, it's not yours until
you pay the tax. And the flat rate of 33% would boost the pension pot to someone on
the average wage, only if it's invested in the right thing and not with a lot of these
basic, simple pension funds, which ironically don't even invest in the best countries, let
alone sectors. I mean, some of them haven't even invested in the NASDAQ and standard and
poor when we've had such meteoric rises this year and last year. So, and a flat rate of
33% would boost the pension pot of somebody on the average wage by up to 15,000 over their
working life. She said it would be simpler, fairer. Well, not sure about simpler. I mean,
it's just a calculation that's made. And an important step towards boosting retirement
savings. Well, not on the middle income. It's a squeeze on the middle income who pay more
tax than the lower income, but get squeezed. And then the problem is that they don't want
to, you know, the lower paid in retirement will have a better standard of living than
the middle class. This would be a welcome boost for basic tax rate taxpayers and a cut
in the saving subsidy for higher earners while still rewarding savings, but only if they
are properly invested. There needs to be a raid on those funds which have high yearly
costs, have high ongoing costs and are repeatedly in the lower quarter. Or they don't actually
match what should be a decent amount. So, so tax relief could be rebanded as government
back saving schemes. That's a bit hilarious. For every £2 that savers put towards their
pension, the government could contribute another £1, a huge incentive to save for everyone.
Well, I mean, we need to save because the government will see this that over time, they'll
get receipts from investment companies. They'll get receipts from continually playing with
the pension system. So this would see, you know, you give with one hand and you take
with the other. And just because former Chancellor Rishi Sunak and George Osborne, among those
to have reportedly considered a flat rate pension relief. So it's not going to be favourable
where it's like most of these taxes, you say, well, somebody earning £50,000 probably pays
three times somebody on minimum wage. And when they say, oh, look, I'm not getting any
money back because they haven't given any money in tax through their earnings because
they're on the threshold. Or it's barely enough. It's when you earn that more money and you
reach the past your yearly allowance into your 20% and then into your 40% where you
start paying serious amounts of taxation. So please can you comment on this video? Can
you please support the channel by subscribing and clicking on the bell? Can you support
it also by sharing with your friends and family so they get to know all this information about
the potential likelihood of what is happening with their money? If you find this video interesting,
please can you sponsor me and other channels that I have? Shouldn't cost too much and
information will be in the show notes. And please, if you found this in this video helpful,
can you donate also information in the show notes? So please can you investigate this
further about how you are going to potentially be affected in the October budget, which is
on Halloween day, which was probably chosen on purpose. And please can you support me?
Thank you very much and see you on the next one. Bye bye.