Touchbutton 90 – ‘The Jean Genie’
Detective Chief Inspector (‘DCI’) Gene Hunt is a lead character in the BBC TV series, ‘Life on Mars’ and sequel ‘Ashes to Ashes’, which are set in the 1970s and 1980s respectively.
Referencing David Bowie’s 1972 hit single, ‘The Jean Genie’, DCI Hunt often refers to himself as ‘The Gene Genie’. It turns out, eventually, that Hunt is indeed something of a shaman with connections to other realities, albeit in the very convincing guise of the old-school, gruff, no-nonsense ‘copper’ to which followers of the series had become familiar.
“…Jeremy Hunt, seems to take the same mantle as his fictional namesake, at least to the extent where little is as it seems.”
Chancellor of the Exchequer, Jeremy Hunt, seems to take the same mantle as his fictional namesake, at least to the extent where little is as it seems. The Chancellor, together with Prime Minster, Rishi Sunak, continue to claim they are agents of low tax and small state conservatism. Yet the evidence would appear to be quite different, given the announcement yesterday, heralding a period of what has been called ‘managerialism’ characterised by high tax and a large state.
Income Tax personal allowances have now been frozen until 2028 and the threshold for income above which Income Tax is paid at 45% has been cut from £150,000 to £125,140. These measures will drag a significant number of people into paying higher rate and potentially additional rate tax on their income.
The Dividend Tax Allowance will be reduced from £2,000 per annum to £1,000 from April 2023 and to £500 per annum from April 2024. For many business owners and investors, for who dividends are the main source of income, this will be a significant tax rise.
The Capital Gains Tax (‘CGT’) allowance will be £6,000 from April 2023, down from £12,300 currently, with a further reduction to £3,000 from April 2024 – a notable tax rise on the profits of investors.
“…by April 2028, the nil rate band will have been stuck at the same level for 19 years, resulting in more estates being drawn into the IHT net…”
The freeze to the rate below which Inheritance Tax (‘IHT’) is charged at 0% (the so-called ‘nil rate band’) has been extended for a further two years. This means that by April 2028, the nil rate band will have been stuck at the same level for 19 years, resulting in more estates being drawn into the IHT net, simply by reason of the rise in asset prices during that period.
‘The Jean Genie’ is reprised on David Bowie’s 1973 album ‘Aladdin Sane’, the title track of which features an enthralling fusion of jazz and avant-garde piano by Mike Garson, the American pianist. Garson’s piano part is even more impressive given that it was entirely improvised and recorded in one take.
By contrast, there is no sense of improvisation in yesterday’s announcement, the pitch having been rolled very assiduously in the last few weeks.
This page is issued and approved by Bordier & Cie (UK) PLC (‘Bordier UK’), which is authorised and regulated by the Financial Conduct Authority (‘FCA’) Registered Number: 114324. Bordier UK is a specialist investment manager dedicated to providing portfolio management services. We offer Restricted advice as defined by the FCA, which means that if we make a personal recommendation of an investment solution to you, it will be from Bordier UK’s range of investment propositions and will reflect your needs and your approach to risk.
This page is not intended as an offer to acquire or dispose of any security or interest in any security. Potential investors should take their own independent advice to assess the suitability of investments. Whilst every effort has been made to ensure that the information contained in this page is correct, the directors of Bordier & Cie (UK) PLC can take no responsibility for any action taken (or not taken) as a result of the matters discussed within it.
