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Light at the end of the tunnel?

7th Dec 2014
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The Autumn Statement was the typically upbeat message you'd expect with a general election coming next May. However, I haven't found much in the way of good news for many of my clients.

The Stamp Duty changes were long overdue, and although it is now a fairer tax the immediate effect is causing quite a stir down in the West Country where £250,000 is an average price for a 3-bedroom house. So a client I say on Friday with a buy-to-let portfolio looks like he may be saved because the houses trapped at under £250K under the old rules should now sell for quite a bit more and avoid him being left with negative equity.

On the other hand, another client for whom I have prepared income references is going to be struggling. He was looking at houses up to £250K and now fears that the market will start to push prices up towards £260K and beyond, which is out of his reach. 

As always, there are winners and losers.

Many commentators seemed to be pleased with the increase in personal allowances and revised basic rate tax band for 2015-16. Having done the sums I can't see what they were so excited about!

Of more concern was the economic outlook, which GO managed to pass over pretty quickly in his opening remarks. Growth is 3% but falling in future down to 2% - so the likelihood of significant pay increases is remote, and in fact inflation could easily exceed growth. I suppose the good news is that the Bank of England is very unlikely to have any scope to increase interest rates. The general impression I got was that the economy is in a fragile state, and it ain't getting any better for the foreseeable future.

Looks like the light at the end of the tunnel is an oncoming train after all!

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By Wiganer Elaine
08th Dec 2014 11:29

Truth

As always, complete truth and honesty in politics is a rare commodity (rather like the dodo?), especially when politicians fear that the general public cannot handle it and will effectively "shoot the messenger" and refuse to elect/re-elect them come General Election time!

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Nigel Harris
By Nigel Harris
08th Dec 2014 13:43

Pier to pier?

I have just received a newsletter from a well-known tax investigation insurance co telling me that he Autumn Statemen included news on "pier to pier lending"! Clevedon pier is desperately in need of funds for renovation, I wonder if wealthy Brighton might have some spare cash?

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Replying to mkowl:
By k743snx
10th Dec 2014 18:50

Brighton

From what I hear, not once the Greens have finished with it.

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