Curious Cryptos’ Commentary 4th May 2024 — Taxes, snake oil, & analysis

tl;dr

UK wealth taxes are a given. Avoid the snake oil sellers, and concentrate on proper analysis.

Market Snap

Market Wrap

With that overnight rally, though I haven’t seen the actual quotes myself yet, clearly the naysayers have been piling in spouting their nonsense.

Occasional Series — UK

If anyone was in any doubt before now, then read the runes. After the next general election, the new government will have the largest majority ever.

There is one very obvious outcome. Wealth taxes will be levied immediately, and ramped up every year. It matters not whether you agree with wealth taxes or not. What matters is that you need to plan for this outcome, especially if you are asset-rich but cash-poor. In that scenario, you will be forced to sell assets to pay the wealth tax, but first you will have to give up 20% or more of those proceeds in capital gains tax, having already paid income tax before acquiring those assets.

Very careful and thoughtful financial planning is going to be required. On the upside, house prices are going to take a big tumble, giving an immediate productivity gain for the whole country.