Money blog: Capital gains tax rise on way, leading tax firm warns
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Top tax company advises individuals to get ready for an increase in capital gains tax.
Taxpayers need to get ready for Labour to increase the rate of capital gains tax (CGT) in its upcoming autumn budget, as suggested by a top tax company.
Nimesh Shah, the CEO of Blick Rothenberg, stated that Sir Keir Starmer has made it very clear that the budget will be tough for those with higher incomes and wealthier taxpayers.
The prime minister's pessimistic portrayal of the situation was highlighted in a recent press conference, following accusations from Chancellor Rachel Reeves that the previous government had created a significant financial deficit of £22bn.
Mr Shah suggested that a possible solution to this issue, while still honoring Labour's campaign commitments, would be to increase the Capital Gains Tax (CGT).
The leader of the country and the person in charge of the finances appear to be moving quickly to make changes to taxes. This means that taxpayers should start getting ready for a probably increase in CGT (capital gains tax) around the middle of the year.
The head of the tax company mentioned that the possible modifications to capital gains tax, which is essentially a fee on any earnings made from selling or getting rid of an asset, could prompt individuals to move out of the UK and become residents in other countries with lower tax rates.
At present, CGT makes up less than 2% of all taxes collected. In 2022-23, it brought in £14.5 billion, which is £2.5 billion less than the year before.
To boost the amount of money collected through taxes, the chancellor may consider raising the CGT rate to 25%-30% and reducing the rate to 20% for the sale of business assets to encourage the growth of entrepreneurship.
Hotel accused of cancelling reservations for nights of Oasis concert - and then re-adding them at a higher cost.
A group of hotels in Manchester is being accused of canceling reservations from customers on the nights when Oasis is set to perform in the city in 2025. They are allegedly reselling the rooms at a higher rate.
Sacha Lord, the advisor on night time economy for Greater Manchester, posted on X last night that he had received notifications from "various individuals" who were informed that their hotel bookings at Maldron Hotels were cancelled due to a "technical glitch".
He said they were later sold again for three times the original price.
Many people have responded indicating that they have been impacted by the problem.
Mark Slinger, a 36-year-old Oasis enthusiast from the Isle of Man, shared with Sky News that he secured a reservation at Maldron Hotels in the heart of Manchester for the 20th of July. This coincided with the last performance of Oasis at Heaton Park.
He booked a £90 room on booking.com yesterday morning after finding out about the band's upcoming reunion tour.
Nevertheless, he received a call from the hotel that night requesting him to cancel the reservation.
The email says: "We wanted to let you know about a problem with your reservation at Maldron Hotel Manchester City Centre. Because of a technical mistake, you got a confirmation for a booking that didn't actually go through. Regrettably, we can't take your booking right now."
It was mentioned that a request to cancel had been sent, and Mark was urged to "quickly approve" it.
He told Sky News that he did not agree to the request and will not be completing it. He also does not think that the problem was caused by a technical mistake.
"He mentioned that they discovered they could resell the tickets at a much higher price after cancelling them because of the Oasis concert."
Maldron Hotels admitted in a statement to the Money blog that a technical mistake occurred on Monday and Tuesday, resulting in more rooms being reserved at its two Manchester hotels than were actually available for the four Oasis concerts.
The company mentioned that they won't be able to fulfill any reservations made during these dates and are not accepting any bookings until they resolve the issue.
The hotel explained that they were not trying to sell rooms at higher prices on purpose. Instead, they were facing a problem of overbooking caused by a technical mistake in their booking systems.
In addition, a few customers were able to reserve rooms at a higher cost later that night due to the technical issue. Unfortunately, we will not be able to honor these bookings as well.
"We will be respecting all reservations made before the 26th of August."
We are truly sorry for any trouble this may have caused.
Hotels use dynamic pricing, which means they adjust their rates based on demand. This means that prices can go up significantly during popular events.
Yesterday, we shared that the cost of booking a hotel for the first night of Oasis's concert at Wembley had risen to three times the usual price compared to the previous week.
"I checked out a Holiday Inn nearby a few miles away the week before the concert. It costs £195 per night. But on the first night of the concert, the price goes up to £594 per night," mentioned reporter Matthew Thompson.
"Before tickets are even available for purchase, hotel rooms are already being booked by eager customers. This indicates the high level of interest and demand for these tickets."
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Can energy companies assist customers facing increased bills this winter?
Several of the largest energy providers in the nation are participating in discussions with the government today to explore ways they can assist customers who are facing challenges in paying their fuel bills during the upcoming winter season.
Centrica, EDF, and Scottish Power are some of the companies involved in talks with Minister Miatta Fahnbulleh at the energy department. Also participating are Ofgem, Energy UK, and Citizens Advice.
Our political expert, Darren McCaffrey, explains that the government is trying to encourage energy companies to provide more assistance to their customers.
The government is indicating that there is less assistance available than before, financially we are in a tough position - they are expecting businesses to take responsibility," he explains.
The government is focusing on three key priorities:
It is currently unclear if energy companies will be willing to cover the cost to assist.
Darren mentioned that the government is attempting to steer them towards that path.
"That is the main point that could come out of this meeting."
The low value of the dollar is causing a decrease in gasoline prices.
Written by Sarah Taaffe-Maguire, a journalist covering business topics
Today is a great day for people going to the US because the pound is still close to its highest level against the dollar in more than two years.
One British pound is equal to $1.32, which allows you to get more value compared to the past 29 months.
Experts predict that the Federal Reserve will significantly reduce interest rates, leading to a decrease in the dollar's value.
Because oil is purchased using dollars, a devalued currency can result in lower costs for importing gasoline. Today, the standard oil price has dropped to under $80 per barrel, reaching $78.79, the lowest level since last Friday.
The largest companies on the London Stock Exchange have seen a slight decrease in their share prices. The top 100 companies (FTSE 100) are down by 0.02%, while the 101st to 350th most valuable companies (mainly UK-based companies of the FTSE 250) have experienced a 0.06% decrease.
Exciting news for travelers, but not so great for investors as it is anticipated that Ryanair ticket prices will continue to remain low.
Holidaymakers can rejoice as the CEO of Ryanair hints that ticket prices may continue to decrease during the winter months and into the upcoming year.
Michael O'Leary informed journalists that prices for the low-cost airline were expected to increase by 10% from July to September, however, they will actually decrease by 5% instead.
We mentioned earlier this month that hotels throughout Europe have been reducing their prices because there are not as many people looking to book rooms. The surge in travel after the COVID-19 pandemic is starting to slow down, and travelers are not interested in paying high prices anymore.
Mr. O'Leary mentioned that there is a possibility for ticket prices to drop by 5% within the next six months, until the financial year concludes in March.
"Many more passengers are choosing to fly with us this summer at reduced prices," stated Mr. O'Leary.
Exciting update for our riders, unfortunate news for our investors.
In different statements, Mr. O'Leary has suggested that airplane passengers should only be allowed to have two alcoholic beverages at airports in order to address the increasing issues of disruptive behavior on flights.
"We don't want to criticize people for enjoying a drink," he said to the Daily Telegraph.
"Although we prohibit individuals from drinking and driving, we continue to allow them to fly in airplanes at an altitude of 33,000 feet."
He mentioned that it is challenging for the staff to recognize passengers who are drunk when they are getting on board. He mentioned, "If they are able to stand and walk slowly, they will be allowed on board. It is only after the plane takes off that we notice their inappropriate behavior."
Iceland's leader warns that sudden increases to the minimum wage could financially ruin companies.
The head of Iceland is worried that a sudden increase in minimum wage could cause the budget supermarket chain to go bankrupt.
Richard Walker said to The Telegraph that it is important to pay employees as much as they can, but any adjustments should be made gradually over time.
The lowest pay allowed by law went up in April to £11.44 for employees who are 21 and older. Young workers aged 18-20 now earn £8.60.
The Labour government has not officially announced any upcoming alterations, but deputy prime minister Angela Rayner has strongly supported a suggested revamp of employees' rights - such as raising the minimum wage, abolishing zero-hours contracts, and putting an end to "fire and rehire" tactics.
Mr. Walker, a previous donor to the Conservative Party who changed his allegiance to the Labour Party in January, expressed his backing for the reform. However, he cautioned that a sudden implementation of wage changes could have a negative and harmful effect.
"If Labour raises the minimum wage and introduces day one rights, that's okay, but it should be done gradually. If they suddenly announce 'the minimum wage is now £15', that would financially ruin us," he expressed.
Increasing the national minimum wage by a significant amount would have negative consequences. It's important to pay people fairly, but we should aim for gradual increases rather than a sudden jump that could harm businesses. Let's continue to strive for better wages, but let's do it in a way that is sustainable for all parties involved.
Celebrity cook reveals affordable soup formula - while selecting finest low-cost meals in Kent
Each Wednesday, we invite top chefs recommended by Michelin to share their top picks for affordable dining in their area and what they like to cook for themselves at home. In our latest edition, we caught up with Stephen Harris, the chef-owner of The Sportsman, a highly-rated gastropub in Whitstable, Kent.
Hey Stephen, could you share with us some of your top spots in Kent where you can enjoy a meal for two under £40?
I really enjoy visiting The Refectory in St Dunstan's, Canterbury. My son and I make a trip there every Saturday morning before heading to The Goods Shed farmers market. Their brunch menu is top-notch, with a unique Aussie touch that elevates it to restaurant quality. I usually opt for the eggs benedict or simply scrambled eggs on toast. The coffee is also fantastic. Although it can get crowded and there is often a line, the wait is definitely worth it.
I really enjoy visiting Harbour Street Tapas in Whitstable. I prefer to go there in the early evening and my go-to dish is the Iberico ham. We've been bringing our son there since he was young, and he has picked up some good restaurant etiquette from going there. The staff is excellent, and we feel fortunate to have such a great restaurant at the end of our street.
What is your favorite budget-friendly meal to make at home when you're staying in for the night?
I enjoy making vegetable stew in my free time. Instead of throwing away the trimmings of the vegetables, I put them in a pan along with some dried cep, ginger, soy sauce, herbs, and tomato puree. I then add water, bring it to a boil, and let it simmer for a couple of minutes to make a flavorful stock.
I cook a diced onion in olive oil, then I throw in whatever vegetables I have available. I start with the toughest vegetables like carrots, celery, chili, herbs, garlic, peppers, zucchini, freshly chopped tomatoes, and then either potatoes or beans.
Once everything is tender, I pour the strained stock, made with leftover pieces and spices, over the ingredients and simmer until the liquid has thickened to create a rich sauce.
The outcome is a nutritious vegetable-centered dish that is very delicious.
What inspired you to become a chef?
I didn't start my career as a chef until I was 34 years old because I had a passion for cooking and wanted to open my own restaurant. Prior to that, I worked as a history teacher and later as a financial consultant.
I learned how to cook on my own, but decided to work in a restaurant kitchen in London to gain experience and understand how restaurants run before starting my own business. I started off as a commis chef at The Fire Station in Waterloo, but eventually moved back to Kent in 1996.
We have talked to many skilled chefs - see their suggestions for affordable dishes from different regions in this blog section.
The map displays how the cost of homes has changed in different areas, with some regions seeing the highest increases.
The cost of homes has gone up by 1.4% since the beginning of the year and is predicted to increase by 2.5% every year by the end of 2024, based on a certain measure of market trends.
According to the most recent house price report from Zoopla, there has been a 20% increase in buyer interest compared to the same time last year. Additionally, the number of homes available for sale is at its highest level in seven years.
The property website stated that all main indicators for sales in the market have increased compared to 2023, thanks to economic growth and a boost in consumer trust.
Every year, the price of the typical home has gone up by 0.5% - however, the situation varies depending on the location, as demonstrated in this map...
Many regions have shown progress, but the South West, South East, East of England, and East Midlands have experienced slight declines, according to Zoopla.
In general, the housing market in the UK is described as being more stable than it has been in the past five years.
Reduced interest rates on home loans and a better economic forecast have attracted more people looking to sell or buy in the real estate market...
"We believe that typical mortgage rates will stay above 4%, which should help facilitate more people buying and selling homes," it further stated.
Gas prices are currently 6p higher than they are expected to be, according to the RAC.
Gas station owners are being encouraged to lower prices for drivers as the cost of fuel from suppliers decreases.
The RAC has asked stores all over the country to lower their prices to match the continuous decrease that started in early July and rapidly intensified last week.
What do wholesale prices mean?
Information from the Fuel Watch service reveals that the cost of petrol at wholesale was around 103p per liter last week, with retailers making a profit margin of 10p. This is higher than the typical 8p margin, which means that consumers can expect to see prices around 136p per liter including taxes, according to the RAC.
What are the prices at the gas station?
But, the typical cost of gasoline is currently at 142p - an increase of 6p. Meanwhile, for diesel, retailers are advised by RAC to sell it at approximately 139p per liter - a decrease of 8p from the current 147p.
The blog post explains that regulators recently discovered that fuel prices in the UK are still excessively high.
According to Simon Williams, who is the head of policy at RAC, it's even more shocking when you consider that we were supposed to be saving money with a temporary 5p reduction in fuel tax, which may end soon.
Again, we want to remind retailers to act ethically and pass on the savings from cheaper wholesale fuel to their customers at the gas station.
