Should we rip up capital gains tax rules? And how to save 40% off a new car

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 13 September 2019

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

Entrepreneurs and investors pay less tax on their profits to reflect the risk they take.

That’s the principle that lies behind capital gains tax being lower than the rates charged on employment income.

But the influential think-tank, the Institute for Public Policy Research, wants to rip up that system and charge the same rate on gains from selling shares or property as income tax – and hack back the annual capital gains tax allowance to just £1,000.

It even wants to remove the special low entrepreneur rate given to those who have sold a business that they built up.

Is this the kind of For the many not the few move that Britain needs to level the playing field between those with plenty of capital and the ability to make investments and those who don’t?

Or is it just another planned tax raid on those putting their money to productive use and growing our collective wealth?

On this week’s podcast, Simon Lambert and Georgie Frost dig into the IPPR’s proposals and look at whether this is the kind of thing that could become Labour party policy?

They also look at long-term investments that have paid off, risky investments to be wary of and the one thing plenty of people are happy to sink thousands of pounds into

knowing that they will lose a big chunk of their money – a brand new car.

The good news is that due to a perfect storm of a deadline on new regulation and crashing sales, there are some astonishing deals on pre-registered ‘new’ cars with as much as 40% off. The bad news is that you’ll still almost certainly lose money.

Transcript

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0:00.0	Welcome to This Is Money. I'm Georgie Frost.
0:02.3	And I'm Simon Lambert.
0:03.4	And coming up, calls for savers as investors,
0:05.8	bite letters and entrepreneurs to pay more tax,
0:09.0	which sounds like, well, most of us.
0:11.7	If you actually have any cash left after tax,
0:14.0	we look at how you can give your kids a pension leg up.
0:17.1	We bring you the latest in a cup of,
0:19.0	if it sounds too good to be true investment stories.
0:22.4	Simon provides a Woodford update, plus how motorists can take advantage of big discounts on new
0:28.3	cars. Don't forget you to stay up to date with all the latest breaking money news. Just go to
0:32.1	this ismoney.co.com or download the app. But first, at the same time that we talk of concern at the number of people of saving,
0:41.4	it seems, Simon, that we keep talking about these obstacles that keep coming up.
0:45.6	So last week it was the rubbish savings rates and politics.
0:48.6	We really don't need to go into any more detail with that one.
0:51.5	But this week, it's tax.
0:53.1	Now, the influential think tank,
0:54.6	the Institute for Public Policy Research, has been mooting the idea of slapping savers and investors
1:00.4	with an extra £120 billion over five years. That's not each, by the way, under a major
1:07.0	shake-up of capital gains tax. They've also suggested a tax rate on entrepreneurs. But
1:12.2	firstly, Simon, who are the IPPR? What's their agenda here? The IPPR is a think tank.
1:21.4	And there's an awful lot of think tanks. We were talking about the think tanks last week
	...

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