The general election is fast approaching and both Labor and the Conservatives are vying for votes with promises to increase our wealth.
But is there substance behind these promises? Are better times ahead for British savers and investors?
Or could they end up looting our investments and pensions?
In this special video, This is Money’s Simon Lambert speaks to Hargreaves Lansdown’s head of money and markets, Susannah Streeter, to discuss what lies ahead for investors and what political parties could do to give them a real boost.
The backdrop to the election has been increasing tax pressure on top earners in recent years, with frozen tax thresholds dragging more taxes down to 40 per cent.
Further up the scale, the freeze has meant more people lose their personal allowance and are hit with a 60 per cent tax on over £100,000. Those who win then go straight into the 45p tax bracket, which Chancellor Jeremy Hunt reduced from £150,000 to £125,140.
Meanwhile, savers and investors have also faced a raid.
The tax-free personal savings allowance has failed to increase, despite inflation and higher interest rates. And it has been worse news for dividends and capital gains, with tax-free allowances cut for both, from £2,000 to £500 and from £12,300 to £3,000 respectively.
Britain’s new Isa has been promised to be a boon to investors, but will this be enough to lift their spirits and improve confidence in the UK stock market?
On the pensions front, Labor has previously said it would bring back the lifetime allowance, but there are now rumors of a U-turn on this. However, the party has not confirmed this, leaving those with larger pension funds wondering whether the lifetime allowance will return and at what level.
Simon and Susannah discuss all of these things in detail and more.
