If the polls are even vaguely correct, Britons will vote for change in six weeks. The UK will have a Labour government a few months sooner than most commentators expected (although the exact date was predicted on the Merryn Talks Money podcast a month ago.) With that in mind, it’s worth asking what that might mean for your money —and if there is anything you can do in advance of an onslaught of new policy.

The first and most obvious thing to think about is your pension. Any new finance minister will be. There is more than £2 trillion ($2.6 trillion) held in pension funds in the UK and more than £50 billion given in tax relief on pension savings every year. That’s real money. Labour has said it will rethink the abolition of the Lifetime Allowance, which limited how much you could have in your pension before you were taxed on it. It’s also likely to look again at how much you can take tax free from your pension. This used to be 25% on any pension but was recently capped at £268,275. A simple way to raise a little extra cash, now that the principle of a cap has been established, would be to cut this – and hence push up the tax take from pension spending. You might also expect there to be some tightening of the tax relief on pension contributions.

QOSHE - How You Can Protect Your Assets From a Labour Government - Merryn Somerset Webb
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How You Can Protect Your Assets From a Labour Government

19 1
24.05.2024

If the polls are even vaguely correct, Britons will vote for change in six weeks. The UK will have a Labour government a few months sooner than most commentators expected (although the exact date was predicted on the Merryn Talks Money podcast a month ago.) With that in mind, it’s worth asking what that........

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