What are you hoping George Osborne will announce in the Budget this week?
Tomorrow (Wednesday) George Osborne, the Chancellor of the Exchequer, will deliver the Budget for the next financial year.
Certain bits and pieces have already been leaked to the media, with more likely to follow in the next day or so. For more on what’s most likely to be announced, check out our Budget 2014 predictions.
But Budget week is not just about working out what the Chancellor is probably going to say, but also a chance for us all to think about what we would do in his shoes. So what would you most like Osborne to say on Wednesday?
Here’s a couple of ideas from my own wishlist:
Reform Stamp Duty
The current Stamp Duty system is an absolute farce. The thresholds at which you are whacked with the tax are in desperate need of revision.
I like the idea proposed by the Association of Chartered Certified Accountants (ACCA), which would introduce a structure similar to that of Income Tax, rather than the current cliff-edge approach.
[SPOTLIGHT]Let’s take the example of a property bought for £250,001. The current Stamp Duty thresholds mean that you pay 1% tax on properties bought for £125,000-£250,000 and 3% for properties bought for £250,001-£500,000.
So because it is £1 above the threshold, our buyer would have to pay 3% – just over £7,500 – in Stamp Duty.
If Stamp Duty worked like Income Tax, then the buyer would pay 1% Stamp Duty on the first £250,000 of the purchase, and then 3% on the amount above £250,000 (in this example, just £1).
That would come to a tax bill of a little over £2,500, a far more sensible figure to my mind.
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Revise Child Benefit changes
Last year the Government revamped Child Benefit, meaning that families where one parent earns more than £60,000 will receive no Child Benefit. If one parent earns more than £50,000, but less than £60,000, they will be entitled to a reduced payment.
I’d like to see the Chancellor address the inherent unfairness in this system. It’s just plain daft that a family with two parents who earn £45,000 a year – meaning a household income of £90,000 – receive the full benefit, while a family with one high earner doesn’t receive a penny.
Cut alcohol duty
Well, we all like a tipple now and again.
So what do you think? What would you most like George Osborne to do on Wednesday? Let us know your thoughts in the comments box below.
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