How to shield your savings from a Labour tax raid

Savers must act now to protect their wealth from the Government – and an incoming Labour administration. Tax allowances are being slashed again by the Conservatives in April and the new tax year is also highly likely to see a change of government as Labour storms ahead in the polls. A higher rate, 40pc, taxpayer will be £335 worse off next year as a result of the tax squeeze on savings and investments, according to estimates by wealth manager Quilter. Investors could face an even bigger hit if Labour subsequently increases taxes after getting into power. Labour is largely expected to win the next general election which must be held before the end of January 2025. The capital gains tax allowance is being brutally halved from £6,000 to £3,000 in April while the dividend tax allowance will drop from £1,000 to just £500. As a result of the cut an extra 1.1 million people will have to pay dividend tax from April 2024, according to figures from HMRC obtained in a Freedom of Information request by stockbroker AJ Bell. In addition to a tax raid on investment returns, the freeze to the personal savings allowance – the limit to how...

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