interactive investor comments on the Labour manifesto
Myron Jobson and Alice Guy respond to the launch of the Labour Party general election manifesto.
13th June 2024 13:19
by Myron Jobson from interactive investor
Capital Gains Tax
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The Labour manifesto did little to dispel speculation that capital gains tax could rise if the party comes to power. Regardless of what might or might not happen to the tax, making the most of tax-efficient ISA and SIPP wrappers, which shields any interest, dividends, or capital gains earned from income and capital gains tax, remains a good strategy. This means your investments can grow without being eroded by taxes.
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“A recent interactive investor survey of 1,051 UK adults, conducted on 6 June, ahead of the launches of the major party manifestos, found almost half (47%) of investors are either mulling changes to their investment portfolio (32%) or have already made tweaks (15%) with the upcoming general election in mind.
“While the election circus plays out, keeping your investment plan steady and focusing on the long haul is often the wisest approach.”
Other notable findings from the survey:
- Of those who have made changes, 30% said they are holding more money in cash, and almost a quarter (24%) said they are reducing exposure to the UK.
- However, 48% of respondents said their investment behaviour hasn’t changed.
- 13% of respondents said that they are considering making changes to their pension strategy, as uncertainty about the pension lifetime allowance lingers.
State Pension triple lock and workplace pensions
Alice Guy, Head of Pensions and Saving, interactive investor, says: “It’s great news that Labour recognise there are big issues with the current workplace pension system. Many workers aren't saving enough for a comfortable retirement and that’s a ticking time-bomb for the future. There are also big problems with pension savers building up multiple pots over their working life, which makes pensions unnecessarily complex and confusing.”
Lifetime allowance
Alice Guy, Head of Pensions and Saving, interactive investor, says: “The manifesto is muted on the lifetime allowance, with rumours abounding that the plan to reintroduce this tax may be scrapped. It’s a timely reminder that policies can change and it’s important to block out the political noise and keep on going with your own personal financial plans.”
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