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Well, now the election is called! There will be no meaningful news from MNG for months, there will the insipid reality that Labour need cash and that it’s first choice won’t be general taxation… to start with.
Think big picture, think SIPP and pension lump sum allowances.
An emergency budget with a large majority is a new law being voted through within weeks.
Now think a collapsing share price as the market hopes for the best.
This is time, gents, no doubt about it.
Or, more probably, not. There may be a little volatility in the next 6 weeks, but the market has already priced in a labour win. Probably not a 1997 win, but largest party by a bit. M&G, as one of the bluest of the blue chips, will probably be higher on election day than now. It’s not going to ”tank”, certainly not tomorrow (by ”tank”, I mean a drop of 10%+).
Sean, why would the election make any difference to the mng share price ?
Piccy, a 10% drop is classed as a collapse.
Hi Rob, because the easiest way to raise the money to nationalise rail, possibly wate, without borrowing is by tax. Income tax is too high, and they know this. Why not tax profits.
You can Google Rachel’s interviews and have a listen. Ordinary tax payers are probably the only ones that are not initially going to reap what they sowed…
Futures are down. Let’s see which parts of the FTSE are hit tomorrow
Apologies for of topic but I can't see why Labour would want to nationalise water, electric, railways, etc when they can just windfall tax the hell
out of them, and leave others to take the rap for operating efficiently and making cost savings, redundancies, etc?
read the newspapers the. research railway nationalisation.
for some others here, start research rachel reeves speeches, she’s told you her co**** plan already.
Hi Sean/Paul, i'm not really into politics, but the people of this country will be voting for who they think will do the best job, this is a democracy after all ? also we are living in such an unpredictable world, who knows what events are in front of us, as for mng, we all know this is more than capable of dropping back to 170 if things turn ugly and also the ftse is currently breaking all time highs, on the other hand with inflation dropping and interest rates to follow this could go a lot higher if only it was that easy to predict then we could all be very rich, i'm currently quite happy with my average here, but will be holding any dividends from other shares in cash for any future top ups
best of luck with your investments, and hopefully we will get more highs than lows
Spot on Robleo. Nobody is here to lose money, we all trade/ invest to make things better.
Wealth tax is the way to go imo. Income taxes are certainly a little broken in the country at the moment and are broadly taking the wrong money from the wrong people.
Interested in why you don't think it'll be at 1997 level?
From what I see I'm expecting far worse. The whole conservative party has essentially broken at this point, too kowtowed to the loon fringe to appeal to the wider-public, too concentrated on furiously rejecting objective realities to conceive coherent policies for the future, and too devoid of brainpower to operationalise any policies they might come up with. Granted, I could be suffering from a sampling bias, but I engage with different members of conservative groups all across the country and the level of disillusionment is just so much higher than I've seen before. Just a real sense of despair at this prioritisation of farce like Rwanda and culture wars nonsense over tangible attempts to make even a scintilla of positive change to the country.
Wealth tax, I guess more wealthy people would move abroad.
Already denied by Labour. Expect the emergency budget to offer the bribes to poorer voters, with a couple of stings for the £100k+ workers.
I suspect the LTA and, most importantly, the 25% tax free £250k allowance to be hacked away straight away. Loads of commentators are on to this. Your average Labour voter is never going to get that in a pension pot, let alone have it as a tax free lump sum. That is a prime cow to milk.
Doesn't appear to have tanked?
All shares are far more volatile at the moment and have been over the last 4 years, than previously experienced, but that's just the nature of the market and global conditions at the moment.
M&G won't "tank" or collapse, the share price will rise, regardless of which party is in power (not much between them these days anyways).
£2.20 on it's way soon, then we are off towards £2.50 before summer is over.
Good luck guys, I'm enjoying reading the new comedy section we've opened up.
As far as I'm aware there is virtually no data supporting this in recent history. Extreme wealth is all bark and no bite with regard to just 'threatening to leave'.
The effort required to upend one's life/assets for monetary savings that, at this level, are fairly trivial, just isn't practical.
If Starmer follows the TB/GB playbook he will follow the existing plan for a year or two and let the economy grow, then start spending more to justify a second term is needed.
While there is chatter about LTA and TFC, these are difficult things to change - many powerful people want their TFC and increased total pension without penal tax rates. Labour cannot afford to attack its senior doctors / head teachers / senior officials. Allowing the real value of TFC to decline with higher inflation is the current approach. I would expect IHT to apply to pensions (cant really understand why it is exempt (same for business asset exemption for some AIM stocks)) and also some additional minimum drawdown rules to apply. I dont see state pension being clawed back from pensioners, but reducing NI and raising IT does charge pensioners and could be done instead..
Jayw, it’s very interesting what we think Reeves and Kneeler can or will do.
I place the full allowance into my SIPP each year, so whilst I’m still a higher rate tax payer I’m not paying the 60%. They are going to ruin my day! It won’t be at the emergency/ first budget, but within 12 months.
FWIW, I think the LTA has gone forever, where I think the pain will come is tax relief and the tax free lump sum. They’re not going to be interested in doctors etc when they are retiring, they’re fair game at that point.
The papers are happily reporting big money moves out of pension funds at the moment. Imagine if you took your 25% lump sum and invested it in an ISA.
Only the dull are sat thinking there’s not problem here, the smart money is moving.
Snake eyes, as a lower rate tax payer I believe you are safe, but worth asking.
I think we can all agree that pensions that have not been converted to annuities are a huge pool of assets that are being accumulated tax free.
The current rules are the best they are likely to be, so if you can why not take the money (tax efficiently).
Labour has said it wants to consult about how to improve pensions, I cant see them changing anything prior to next tax year when IHT could easily be imposed….perhaps more substantial changes in 2026 following consultations.
Jayw, I think you are right in that we probably have until April to align our ducks. I can see the first budget pushing through the big ticket already announced policies.
By April I think they’ll be ready to start with the tax reliefs etc, showing their real colours. Windfall tax on banks would be my guess, as well.
I am voting for that nice Liberal democrat gentleman, not because I think his party will win but because it is smart for that party (possibly with Reform) to hold the balance of power and therefore cut the extreme edge off Labour policies. If you are smart, you should seriously consider doing the same. MNG are a decent dividend payer. I believe BoE will kick off with a 0.5% reduction in June and that will send a lot of investment into shares like these.
Jatw, IHT could not "easily" be imposed on pensions; it would be fraught with problems. How would the tax be paid? What would be the impact if money needed to be withdrawn from the pension to pay the IHT (as it would invariably have to) and any future payments from the pension. It would also potenitally drag a lot more people into IHT, which is not the easiest tax to administer.
Also, it should not be forgotten that inherited pension pots do not escape tax entirely. Yes, the money can potentially be withdrawn tax-free within two years of death but the money then loses its future IHT protection. Alternatively, the money can continue to be invested within the pension wrapper and withdrawn by the beneficiaries to supplement their personal income at a later date, at which point it becomes liable to income tax at their marginal rate of tax.
It would be far better and easier to strike at pension reliefs at source. First and foremost, removing higher rate tax relief on pension contributions would save the government £billions annually (it's inequitable that many higher rate tax payers can obtain higher rate tax relief on their pension contributions but only pay basic rate tax on their pensions when in payment). They could also look at (further) limiting the amount that can be taken tax-free (the vast majority of pensioners can only dream of being able to take £268k tax-free). Plus, they could remove the two year window to remove all of the funds from pensions tax-free after death (this tax relief is pretty illogical and overly generous).
From an IHT perspective, more probably should be done to limit PETs whilst at the same time looking again at what assets are liable to IHT. Personally, I think there is a rationale for your principal private residence to remain within IHT, but other assets less so. IHT is far too punitive for assets that have already been taxed in your lifetime.
Personally, I hope nothing happens before April - as I'm 55 in February and will be taking out 25% tax free as soon as possible - whether we get a labour or tory government (I don't trust either side not to keep tinkering and raiding pension benefits)
I think you’ll be ok til Feb, Paul. Some stuff can be voted on the following week, some stuff is legally intensive so will take some time.
"Snake eyes, as a lower rate tax payer I believe you are safe, but worth asking." :) - Happy days Sean, appreciate you sorting that out for me. I assume that was your attempt at humour or an insult?
Still waiting for M&G to tank on 23/5, it appears to have been delayed. Perhaps you would like to revise the dooms day date prediction?
That aside, I prefer to comment on M&G, rather than trying to insult other posters or worrying about what the next government may or may not do, but you knock yourself out. My opinion is M&G will remain strong no matter what colour the flag is at number 10 and I look forward to the rise in share price over the summer months. Nothing you have posted changes my opinion that this is a strong and stable company and a sound investment.