The general election is fast approaching and both Labor and the Conservatives are vying for votes with promises to grow our wealth.
But is there substance behind these promises and are better times ahead for British savers and investors?
Or could our investments and pensions be plundered instead?
In this special video, This is Money’s Simon Lambert speaks to Susannah Streeter, head of money and markets at Hargreaves Lansdown, to discuss what lies ahead for investors – and what the political parties could do to give them a real boost.
The backdrop to the elections has been increasing pressure on taxes for higher incomes in recent years, with frozen tax thresholds pushing even further to 40 percent tax.
Further down the scale, the freeze has led to even more people losing their personal allowances and being hit with a 60 per cent tax above £100,000. Earners will then be moved straight into the 45p tax band, which Chancellor Jeremy Hunt reduced from £150,000 to £125,140.
In the meantime, savers and investors have also suffered a raid.
The tax-free personal savings allowance has failed to increase despite higher inflation and interest rates. And it’s worse news on dividends and capital gains, with the tax-free amounts for both reduced, from £2,000 to £500, and £12,300 to £3,000 respectively.
The new UK Isa has been promised as a helping hand for investors, but will it be enough to boost their spirits and improve sentiment around the UK stock market?
On pensions, Labor has previously said it would bring back the lifetime allowance, but there are now rumors of a reversal on that front. However, the party has not confirmed this, leaving those with larger pension pots wondering whether the lifetime benefit will return and at what level.
Simon and Susannah discuss all these things in detail and more.