Why I think that this share and other shares will rise from April18 Mar 2023 20:31
Per Sam Meadows article in The Telegraph.
"Ever since Margaret Thatcher’s right-to-buy policy turned the UK into a country of homeowners, British people have seen their homes not just as their castle, but also their retirement nest egg.
For a long time, buy-to-let investments were treated favourably by the taxman. However, a series of reforms by former chancellor George Osborne meant that landlords could no longer deduct mortgage interest payments from profits, making this a far less attractive option.
Mr Hunt’s Budget on Wednesday has swung the pendulum further towards pensions.
Rebecca O’Connor, from retirement firm PensionBee, said it could soon be the case that pensions were seen as a better investment option than property.
“I think public perception is maybe a bit behind the reality,” she said. “While the tax incentives to invest in property have been disappearing, pensions have been going the other way.
"The tangibility of property is still attractive to people – but this could really shift the dial."
She pointed out that the value of pensions are determined by the stock market and property by the property market and that investors would need to “take a view”.
She added: “It’s not a case of pensions for everyone and property for no-one, but if this doesn’t make pensions sexy then nothing will.”
Contributions to a pension pot are boosted via tax relief at your marginal rate, meaning that 80p saved by a basic-rate payer would be automatically topped up to £1. For higher-rate payers this is even more generous: £1 in a pension only effectively costs just 60p. Because many people pay higher-rate tax while working but basic-rate tax in retirement, pensions are highly incentivised."
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