Interactive Investor

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

Share on

Keir Starmer, leader of the Labour Party Getty

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.

“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.”

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Please remember, investment value can go up or down and you could get back less than you invest. If you’re in any doubt about the suitability of a stocks & shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.

Important information – SIPPs are aimed at people happy to make their own investment decisions. Investment value can go up or down and you could get back less than you invest. You can normally only access the money from age 55 (57 from 2028). We recommend seeking advice from a suitably qualified financial adviser before making any decisions. Pension and tax rules depend on your circumstances and may change in future.

Get more news and expert articles direct to your inbox