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What the election means for investments and pensions

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The general election is fast approaching and both Labour and the Conservatives are jostling for votes with pledges to grow our wealth.

But is there substance behind these promises and do better times lie ahead for Britain’s savers and investors?

Or could our investments and pensions end up being raided instead?

In this special video, This is Money’s Simon Lambert talks to Hargreaves Lansdown’s head of money and markets Susannah Streeter, to discuss what could lie in store for investors – and what the political parties could do to give them a real boost.

The backdrop to the election has been an increasing tax squeeze on higher earners over recent years, with frozen tax thresholds dragging more into 40 per cent tax.

Further up the scale, the freeze has meant more losing their personal allowance and being hit by 60 per cent tax above £100,000. Earners then move straight into the 45p tax bracket, which Chancellor Jeremy Hunt cut from £150,000 to £125,140.

Meanwhile, savers and investors have also faced a raid.

The tax-free personal savings allowance has failed to move up, despite higher inflation and interest rates. And it has been worse news on dividends and capital gains, with tax-free allowances slashed for both, from £2,000 to £500, and £12,300 to £3,000, respectively.

The new British Isa has been promised as a helping hand for investors, but will this be enough to boost their spirits and improve sentiment around the UK stock market?

On the pensions front, Labour has previously said that it would bring back the lifetime allowance but there are now rumours of a U-turn on that. The party has not confirmed this though, leaving those with larger pension pots wondering if the lifetime allowance will be back and at what level.

Simon and Susannah discuss all these things in detail and more.

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Read More: What the election means for investments and pensions

2024-06-10 16:15:11

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