Three Leisure Stocks to Buy as People Increasingly Travel and Fly
Three leisure stocks to buy as people increasingly travel and fly feature a giant amusement park and entertainment giant that just lured back an esteemed…
Three leisure stocks to buy as people increasingly travel and fly feature a giant amusement park and entertainment giant that just lured back an esteemed former chief, an aquatic entertainment company and global mountain resort operator.
Increased energy costs and a shift toward leisure spending have become trends that should continue in the months ahead, according to BofA Global Research. Pent-up interest in leisure as the economy grows and employment remains high could propel each of these companies that endured the fallout of a global pandemic from the 2020 until now.
However, aggregated BC credit and debit card data, total card spending slowed in Septemberacross goods categories, and spending on leisure services was flat, which may signal the reopening tailwinds on discretionary services are fading, according to BofA. The BofA US Economics team expects a recession, accompanied by a labor market slowdown and further weakness in consumer spending during first-quarter 2023.
Return of Bob Iger to Lead Disney Lifts One of Three Leisure Stocks to Buy
Walt Disney Co., (NYSE: DIS), a Burbank, California-based media and entertainment company, enticed Robert A. Iger, its former chief executive officer, to return to that role effective Sunday night, Nov. 20. Iger, who spent more than four decades at the company, including 15 years at the helm, agreed to serve as Disney’s CEO for two additional years, accepting a mandate from the board of directors to set the strategic direction for renewed growth and to develop a successor to lead the company at the completion of his term.
Iger replaces Bob Chapek, his hand-picked successor, who stepped down from his position in a surprise move. BofA wrote a research report that rated Disney a buy and gave the company a $115 price objective that offers roughly 25% upside from current levels. Iger is expected to fully re-evaluate several of the recent strategic initiatives and corporate restructurings.
The company’s share price had been trending down for the past year but perked up after news spread about Iger’s return.
Successor Struggled Amid COVID Crisis and Political Fallout Due to Controversial Content
Chapek, who took over the helm at Disney in February 2020, incurred concurrent crises shortly after he began that included the COVID-19 pandemic, significant management turnover and several public relations missteps, such as contract disputes with talent and a public battle with the governor of Florida about the company’s content. The leadership change comes on the heels of “disappointing” results in the company’s latest quarter, BofA wrote.
“To Chapek’s credit, he oversaw several transformational changes in Theme Parks, which drove a healthy recovery in revenue and operating profit exiting the pandemic,” BofA reported. “Chapek also took over as CEO during a very challenging time for the industry as it managed the transition toward streaming.”
Despite Iger’s track record and experience at the company and industry, he is expected to fully re-evaluate several recent strategic initiatives and corporate restructurings since his departure. As a result, investors should expect some near-term uncertainty about the company’s direction.
Iger Could Rejuvenate Disney as One of Three Leisure Stocks to Buy
Iger’s first priority likely will be to articulate his strategic priorities for Disney, BofA wrote. Several of Chapek’s recent initiatives and restructurings will be reviewed. They include a move to restructure the company’s Media and Entertainment Distribution segment to centralize budgetary power for content and distribution, as well as raise prices in Theme Parks and DIS+.
“Iger has made public comments recently on the secular challenges in the linear TV ecosystem, which, coupled with accelerating linear subscriber declines, could signal a potential openness to reevaluate strategic alternatives,” BofA wrote. “We also would not be surprised if this announcement prompts another wave of management turnover.”
Near-term catalysts for Disney could include any update on the strategic direction of the company, continued robust theme park demand with several levers for future growth, price increases for Disney+ and Hulu, the roll-out Disney+’s ad-supported tier on Dec. 8 and possible sports betting at ESPN, BofA forecast.
SeaWorld Jumps Among Three Leisure Stocks to Buy
Mark Skousen, who leads the Forecasts & Strategies investment newsletter and advisory services that include Home Run Trader, recommends SeaWorld Entertainment (NYSE: SEAS), of Orlando, Florida. The theme park and entertainment company is a “big beneficiary” of the new post-pandemic economy, he added.
SeaWorld’s revenue hit $1.7 billion over the last 12 months, while its third-quarter earnings jumped 32% on an 8.4% increase in sales. Plus, shares of SeaWorld have soared nearly 300% over the past five years, despite the pandemic, Skousen said.
With the lockdowns over and consumers choosing to spend more on experiential services, the outlook for SeaWorld is exceptional, Skousen recently wrote to his Home Run Trader subscribers.
Insider Buying Boosts the Second of Three Leisure Stocks to Buy
SeaWorld’s Treasurer and Chief Financial Officer Michelle Adams recently purchased 39,000 shares at $51.03, an investment of nearly $2 million. She now owns more than 75,000 shares.
In addition, Chief Commercial Officer Christopher Finazzo purchased 8,950 shares a couple weeks later. He owns over 72,000 shares.
These are “two savvy insiders,” Skousen wrote to his subscribers. He advised that they own the stock, too.
Another reason Skousen said he likes SeaWorld is that his daughter Hayley, a professional figure skater, is performing in a principal role in SeaWorld’s Christmas Celebration in Orlando, Florida. She provided the following link that shows her doing a backflip. Her husband, Pablo, also works there as a musician.
The company’s recognized brands include SeaWorld, Busch Gardens and Sea Rescue. The latter unit saves and rehabilitates marine animals that are ill, injured or abandoned, with the goal of returning them to the wild.
During SeaWorld’s 50-year history, it has built 12 destination and regional theme parks in key markets across the United States, hosting an average of more than 20 million visitors a year.
SeaWorld Shines as One of Three Leisure Stocks to Buy
Guests to SeaWorld attractions receive a variety of up-close experiences with wildlife, as well as thrill rides and shows. Unlike the controversy Disney has encountered, SeaWorld has produced Parent’s Choice and Emmy-Award-winning shows like Sea Rescue and The Wildlife Docs that celebrate the natural world.
“The pandemic was a big negative for entertainment parks, of course, as they were forced to shut down,” Skousen wrote to his subscribers. “But most of them are coming back in a big way. And SeaWorld is no exception.”
Revenue hit $1.67 billion over the last 12 months and sales are up 15% year-over-year, Skousen noted. With the pandemic receding, the outlook remains positive, he added.
Skousen not only recommended the stock, but call options, too. His Home Run Trader service offers both ways to profit.
Vail Resorts Joins Three Leisure Stocks to Buy
Another BofA recommendation that also is favored by the Baron Funds is Vail Resorts (NYSE: MTN), of Broomfield, Colorado. Vail’s focus includes using data to drive a unique, advanced customer commitment for a recurring business model. MTN is also well positioned to benefit from high-end, pent-up leisure demand in the coming ski season.
One shareholder of Vail Resorts is the Baron Growth Fund (BGRFX). BofA rates Vail Resorts as a buy, as does Michelle Connell, the chief executive officer of Portia Capital Management, of Dallas, Texas.
Connell’s key reasons for investing in MTN include:
Strong growing revenues in a softening economy. Despite MTN increasing ticket prices 7.5%, the company’s revenue from ski passes was already up 7% year through the end of September 2022.
$320 Million Invested for Improved Consumer Experience. Just in time for the 2022-23 ski season, MTN has invested $320 million to install 19 new chair lifts across 14 of its resorts.
Investment in Data Infrastructure. MTN has also invested heavily so that the online experience of its consumers is smoother and faster.
MTN should appeal to the environmentally conscious young investor who also skis. The company is ahead of schedule to meet its target of 2030 to have a zero net (carbon) operating footprint.
Vail Resorts has a long history in the ski industry, starting with the opening of Vail Mountain in 1962. It now has 37 resorts in 15 states and three countries, including some of the world’s most iconic destinations, as well as travel-centric retail and hospitality businesses.
The company’s subsidiaries operate destination mountain resorts and regional ski areas such as Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow, Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; and Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in Pennsylvania. Vail Resorts owns and operates a variety of world-class luxury resorts for spa vacations or adventurous mountain lodges for relaxing after a day on the slopes.
Bivalent COVID-19 Vaccine Could Lift Leisure Activities Due to Enhanced Protection Against New Variant
The new bivalent COVID-19 booster provides superior protection against the omicron BA.5 variant, now the predominant strain of the virus. I received the new booster on Oct. 16 after it became available at pharmacies near my house.
However, 200-plus million Americans who are eligible have yet to accept the syringe of that new booster. New cases and deaths can hurt demand for leisure activities, so a bivalent booster could enhance both public health and the economy.
Cases in the country totaled 98,386,225 and deaths reached 1,077,020, as of Nov. 22. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,623,547, as of Nov. 22, according to Johns Hopkins University. Global COVID-19 cases reached 638,978,541.
Roughly 80.6% of the U.S. population, or 267,476,279, have received at least one dose of a COVID-19 vaccine, as of Nov. 16, the CDC reported. People who obtained the primary COVID-19 doses totaled 228,154,832 of the U.S. population, or 68.7%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 33,831,057 people who are age 18 and up, accounting for 13.1% of the U.S. population in that age range.
Despite Russia’s leaders calling their country’s attacks against Ukraine that began on Feb. 24 a “special military operation,” firing into Ukraine also killed two Polish civilians to further inflame an already volatile situation. Investors seeking ways to avoid losing money in the markets amid such uncertainty and escalation of violence should consider the
Bivalent COVID-19 Vaccine Gives Improved Protection Against New Variant
A new bivalent COVID-19 booster in the United States offers superior protection against the omicron BA.5 variant, now the predominant strain of the virus. I received the new booster on Oct. 16 after it became available at pharmacies not far from my house.
However, 200-plus million Americans who are eligible have yet to seize the opportunity. New cases and deaths can hurt demand for natural gas, so a bivalent booster that becomes widely used could aid both public health and the economy.
Cases in the country totaled 98,301,472 and deaths reached 1,077,020, as of Nov. 18. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,619,779, as of Nov. 18, according to Johns Hopkins University. Global COVID-19 cases reached 637,577,338.
Roughly 80.6% of the U.S. population, or 267,476,279, have received at least one dose of a COVID-19 vaccine, as of Nov. 16, the CDC reported. People who obtained the primary COVID-19 doses totaled 228,154,832 of the U.S. population, or 68.7%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 33,831,057 people who are age 18 and up, accounting for 13.1% of the U.S. population in that age range.
Despite Russia’s leaders calling their country’s attacks against Ukraine that began on Feb. 24 a “special military operation,” firing into Ukraine also killed two Polish civilians to further inflame an already volatile situation. Investors seeking ways to avoid losing money in the markets amid such uncertainty and escalation of violence should consider the
Bivalent COVID-19 Vaccine Gives Improved Protection Against New Variant
A new bivalent COVID-19 booster in the United States offers superior protection against the omicron BA.5 variant, now the predominant strain of the virus. I received the new booster on Oct. 16 after it became available at pharmacies not far from my house.
However, 200-plus million Americans who are eligible have yet to seize the opportunity. New cases and deaths can hurt demand for natural gas, so a bivalent booster that becomes widely used could aid both public health and the economy.
Cases in the United States totaled 98,386,225 and deaths reached 1,077,777, as of Nov. 12. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,623,547, as of Nov. 22, according to Johns Hopkins University. Global COVID-19 cases reached 638,978,541.
Roughly 80.6% of the U.S. population, or 267,476,279, have received at least one dose of a COVID-19 vaccine, as of Nov. 16, the CDC reported. Those who obtained the primary COVID-19 doses totaled 228,154,832 of the U.S. population, or 68.7%, according to the CDC. The United States also has given a bivalent COVID-19 booster to 33,831,057 people who are age 18 and up, accounting for 13.1% of the U.S. population in that age range.
Despite Russia’s continued attacks against Ukraine that began on Feb. 24 as a so-called “special military operation,” people elsewhere still are able to enjoy leisure activities. Investors interested in a potentially good run may want to consider the three leisure stocks to buy as people increasingly travel and fly.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Holiday Offer: Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great holiday gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for special pricing on multiple-book purchases.
Former Project Veritas & O’Keefe Media Group operative and Pfizer formulation analyst scientist Justin Leslie revealed previously unpublished recordings showing Pfizer’s top vaccine researchers discussing major concerns surrounding COVID-19 vaccines. Leslie delivered these recordings to Veritas in late 2021, but they were never published:
Principal scientist at Pfizer, Kanwall Gill in 2021:
“We had no idea how it’s going to look like. MRNA vaccines have been there for 50 years, but nothing went to clinical trial because MRNA have been known to have side effects.”
Featured in Leslie’s footage is Kanwal Gill, a principal scientist at Pfizer. Gill was weary of MRNA technology given its long research history yet lack of approved commercial products. She called the vaccines “sneaky,” suggesting latent side effects could emerge in time.
Gill goes on to illustrate how the vaccine formulation process was dramatically rushed under the FDA’s Emergency Use Authorization and adds that profit incentives likely played a role:
Pfizer's principal scientist in 2021:
“It takes 10 year for a vaccine to come out. It takes years of observations... we are doing everything at the same time."
"It’s going to affect my heart, and I’m going to die. And nobody’s talking about that."
Leslie recorded another colleague, Pfizer’s pharmaceutical formulation scientist Ramin Darvari, who raised the since-validated concern that repeat booster intake could damage the cardiovascular system:
Pfizer's pharmaceutical formulation scientist, Ramin Darvari, in 2021:
“They’re engineering it specifically for me to take the next one, so increasing my consumption."
“It’s going to affect my heart, and I’m going to die. And nobody’s talking about that.”
None of these claims will be shocking to hear in 2024, but it is telling that high-level Pfizer researchers were discussing these topics in private while the company assured the public of “no serious safety concerns” upon the jab’s release:
Vaccine for Children is a Different Formulation
Leslie sent me a little-known FDA-Pfizer conference — a 7-hour Zoom meeting published in tandem with the approval of the vaccine for 5 – 11 year-olds — during which Pfizer’s vice presidents of vaccine research and development, Nicholas Warne and William Gruber, discussed a last-minute change to the vaccine’s “buffer” — from “PBS” to “Tris” — to improve its shelf life. For about 30 seconds of these 7 hours, Gruber acknowledged that the new formula was NOT the one used in clinical trials (emphasis mine):
“The studies were done using the same volume… but contained the PBS buffer. We obviously had extensive consultations with the FDA and it was determined that the clinical studies were not required because, again, the LNP and the MRNA are the same and the behavior — in terms of reactogenicity and efficacy — are expected to be the same.”
According to Leslie, the tweaked “buffer” dramatically changed the temperature needed for storage: “Before they changed this last step of the formulation, the formula was to be kept at -80 degrees Celsius. After they changed the last step, we kept them at 2 to 8 degrees celsius,” Leslie told me.
The claims are backed up in the referenced video presentation:
I’m no vaccinologist but an 80-degree temperature delta — and a 5x shelf-life in a warmer climate — seems like a significant change that might warrant clinical trials before commercial release.
Despite this information technically being public, there has been virtually no media scrutiny or even coverage — and in fact, most were told the vaccine for children was the same formula but just a smaller dose — which is perhaps due to a combination of the information being buried within a 7-hour jargon-filled presentation and our media being totally dysfunctional.
Bohemian Grove?
Leslie’s 2-hour long documentary on his experience at both Pfizer and O’Keefe’s companies concludes on an interesting note: James O’Keefe attended an outing at the Bohemian Grove.
Leslie offers this photo of James’ Bohemian Grove “GATE” slip as evidence, left on his work desk atop a copy of his book, “American Muckraker”:
My thoughts on the Bohemian Grove: my good friend’s dad was its general manager for several decades. From what I have gathered through that connection, the Bohemian Grove is not some version of the Illuminati, at least not in the institutional sense.
Do powerful elites hangout there? Absolutely. Do they discuss their plans for the world while hanging out there? I’m sure it has happened. Do they have a weird ritual with a giant owl? Yep, Alex Jones showed that to the world.
My perspective is based on conversations with my friend and my belief that his father is not lying to him. I could be wrong and am open to evidence — like if boxer Ryan Garcia decides to produce evidence regarding his rape claims — and I do find it a bit strange the club would invite O’Keefe who is notorious for covertly filming, but Occam’s razor would lead me to believe the club is — as it was under my friend’s dad — run by boomer conservatives the extent of whose politics include disliking wokeness, immigration, and Biden (common subjects of O’Keefe’s work).
Therefore, I don’t find O’Keefe’s visit to the club indicative that he is some sort of Operation Mockingbird asset as Leslie tries to depict (however Mockingbird is a 100% legitimate conspiracy). I have also met James several times and even came close to joining OMG. While I disagreed with James on the significance of many of his stories — finding some to be overhyped and showy — I never doubted his conviction in them.
As for why Leslie’s story was squashed… all my sources told me it was to avoid jail time for Veritas executives.
Feel free to watch Leslie’s full documentary here and decide for yourself.
Fun fact — Justin Leslie was also the operative behind this mega-viral Project Veritas story where Pfizer’s director of R&D claimed the company was privately mutating COVID-19 behind closed doors:
BREAKING: @Pfizer Exploring "Mutating" COVID-19 Virus For New Vaccines
"Don't tell anyone this...There is a risk...have to be very controlled to make sure this virus you mutate doesn't create something...the way that the virus started in Wuhan, to be honest."#DirectedEvolutionpic.twitter.com/xaRvlD5qTo
“[…] our findings support the hypothesis that the intrauterine environment, particularly essential and non-essential metals, affect epigenetic aging biomarkers across the life course.”
Credit: 2024 Bozack et al.
“[…] our findings support the hypothesis that the intrauterine environment, particularly essential and non-essential metals, affect epigenetic aging biomarkers across the life course.”
BUFFALO, NY- March 12, 2024 – A new research paper was published inAging (listed by MEDLINE/PubMed as “Aging (Albany NY)” and “Aging-US” by Web of Science) Volume 16, Issue 4, entitled, “Associations of prenatal one-carbon metabolism nutrients and metals with epigenetic aging biomarkers at birth and in childhood in a US cohort.”
Epigenetic gestational age acceleration (EGAA) at birth and epigenetic age acceleration (EAA) in childhood may be biomarkers of the intrauterine environment. In this new study, researchers Anne K. Bozack, Sheryl L. Rifas-Shiman, Andrea A. Baccarelli, Robert O. Wright, Diane R. Gold, Emily Oken, Marie-France Hivert, and Andres Cardenas from Stanford University School of Medicine, Harvard Medical School, Harvard T.H. Chan School of Public Health, Columbia University, and Icahn School of Medicine at Mount Sinai investigated the extent to which first-trimester folate, B12, 5 essential and 7 non-essential metals in maternal circulation are associated with EGAA and EAA in early life.
“[…] we hypothesized that OCM [one-carbon metabolism] nutrients and essential metals would be positively associated with EGAA and non-essential metals would be negatively associated with EGAA. We also investigated nonlinear associations and associations with mixtures of micronutrients and metals.”
Bohlin EGAA and Horvath pan-tissue and skin and blood EAA were calculated using DNA methylation measured in cord blood (N=351) and mid-childhood blood (N=326; median age = 7.7 years) in the Project Viva pre-birth cohort. A one standard deviation increase in individual essential metals (copper, manganese, and zinc) was associated with 0.94-1.2 weeks lower Horvath EAA at birth, and patterns of exposures identified by exploratory factor analysis suggested that a common source of essential metals was associated with Horvath EAA. The researchers also observed evidence of nonlinear associations of zinc with Bohlin EGAA, magnesium and lead with Horvath EAA, and cesium with skin and blood EAA at birth. Overall, associations at birth did not persist in mid-childhood; however, arsenic was associated with greater EAA at birth and in childhood.
“Prenatal metals, including essential metals and arsenic, are associated with epigenetic aging in early life, which might be associated with future health.”
Read the full paper: DOI:https://doi.org/10.18632/aging.205602
Corresponding Author: Andres Cardenas
Corresponding Email:andres.cardenas@stanford.edu
Keywords: epigenetic age acceleration, metals, folate, B12, prenatal exposures
Click here to sign up for free Altmetric alerts about this article.
About Aging:
Launched in 2009, Aging publishes papers of general interest and biological significance in all fields of aging research and age-related diseases, including cancer—and now, with a special focus on COVID-19 vulnerability as an age-dependent syndrome. Topics in Aging go beyond traditional gerontology, including, but not limited to, cellular and molecular biology, human age-related diseases, pathology in model organisms, signal transduction pathways (e.g., p53, sirtuins, and PI-3K/AKT/mTOR, among others), and approaches to modulating these signaling pathways.
Please visit our website at www.Aging-US.com and connect with us:
National insurance, income tax, VAT, capital gains tax, inheritance tax… it’s easy to get confused about the many different ways we contribute to the cost of running the country. The budget announcement is the key time each year when the government shares its financial plans with us all, and announces changes that may make a tangible difference to what you pay.
But you’ll likely be hearing a lot more about taxes in the coming months – promises to cut or raise them are an easy win (or lose) for politicians in an election year. We may even get at least one “mini-budget”.
If you’ve recently entered the workforce or the housing market, you may still be wrapping your mind around all of these terms. Here is what you need to know about the different types of taxes and how they affect you.
The UK broadly uses three ways to collect tax:
1. When you earn money
If you are an employee or own a business, taxes are deducted from your salary or profits you make. For most people, this happens in two ways: income tax, and national insurance contributions (or NICs).
If you are self-employed, you will have to pay your taxes via an annual tax return assessment. You might also have to pay taxes this way for interest you earn on savings, dividends (distribution of profits from a company or shares you own) received and most other forms of income not taxed before you get it.
VAT and excise duties are taxes on most goods and services you buy, with some exceptions like books and children’s clothing. About 20% of the total tax collected is VAT.
3. Taxes on wealth and assets
These are mainly taxes on the money you earn if you sell assets (like property or stocks) for more than you bought them for, or when you pass on assets in an inheritance. In the latter case in the UK, the recipient doesn’t pay this, it is the estate paying it out that must cover this if due. These taxes contribute only about 3% to the total tax collected.
You also likely have to pay council tax, which is set by the council you live in based on the value of your house or flat. It is paid by the user of the property, no matter if you own or rent. If you are a full-time student or on some apprenticeship schemes, you may get a deduction or not have to pay council tax at all.
This article is part of Quarter Life, a series about issues affecting those of us in our 20s and 30s. From the challenges of beginning a career and taking care of our mental health, to the excitement of starting a family, adopting a pet or just making friends as an adult. The articles in this series explore the questions and bring answers as we navigate this turbulent period of life.
Put together, these totalled almost £790 billion in 2022-23, which the government spends on public services such as the NHS, schools and social care. The government collects taxes from all sources and sets its spending plans accordingly, borrowing to make up any difference between the two.
Income tax
The amount of income tax you pay is determined by where your income sits in a series of “bands” set by the government. Almost everyone is entitled to a “personal allowance”, currently £12,570, which you can earn without needing to pay any income tax.
You then pay 20% in tax on each pound of income you earn (across all sources) from £12,570-£50,270. You pay 40% on each extra pound up to £125,140 and 45% over this. If you earn more than £100,000, the personal allowance (amount of untaxed income) starts to decrease.
If you are self-employed, the same rates apply to you. You just don’t have an employer to take this off your salary each month. Instead, you have to make sure you have enough money at the end of the year to pay this directly to the government.
The government can increase the threshold limits to adjust for inflation. This tries to ensure any wage rise you get in response to higher prices doesn’t lead to you having to pay a higher tax rate. However, the government announced in 2021 that they would freeze these thresholds until 2026 (extended now to 2028), arguing that it would help repay the costs of the pandemic.
Given wages are now rising for many to help with the cost of living crisis, this means many people will pay more income tax this coming year than they did before. This is sometimes referred to as “fiscal drag” – where lower earners are “dragged” into paying higher tax rates, or being taxed on more of their income.
National insurance
National insurance contributions (NICs) are a second “tax” you pay on your income – or to be precise, on your earned income (your salary). You don’t pay this on some forms of income, including savings or dividends, and you also don’t pay it once you reach state retirement age (currently 66).
While Jeremy Hunt, the current chancellor of the exchequer, didn’t adjust income tax meaningfully in this year’s budget, he did announce a cut to NICs. This was a surprise to many, as we had already seen rates fall from 12% to 10% on incomes higher than £242/week in January. It will now fall again to 8% from April.
While this is charged separately to income tax, in reality it all just goes into one pot with other taxes. Some, including the chancellor, say it is time to merge these two deductions and make this simpler for everyone. In his budget speech this year, Hunt said he’d like to see this tax go entirely. He thinks this isn’t fair on those who have to pay it, as it is only charged on some forms of income and on some workers.
I wouldn’t hold my breath for this to happen however, and even if it did, there are huge sums linked to NICs (nearly £180bn last year) so it would almost certainly have to be collected from elsewhere (such as via an increase in income taxes, or a lot more borrowing) to make sure the government could still balance its books.
There are likely to be further tweaks to the UK’s tax system soon, perhaps by the current government before the election – and almost certainly if there is a change of government.
Wealth taxes may be in line for a change. In the budget, the chancellor reduced capital gains taxes on sales of assets such as second properties (from 28% to 24%). These types of taxes provide only a limited amount of money to the government, as quite high thresholds apply for inheritance tax (up to £1 million if you are passing on a family home).
There are calls from many quarters though to look again at these types of taxes. Wealth inequality (the differences between total wealth held by the richest compared to the poorest) in the UK is very high (much higher than income inequality) and rising.
But how to do this effectively is a matter of much debate. A recent study suggested a one-off tax on total wealth held over a certain threshold might work. But wealth taxes are challenging to make work in practice, and both main political parties have already said this isn’t an option they are considering currently.
Andy Lymer and his colleagues at the Centre for Personal Financial Wellbeing at Aston University currently or have recently received funding for their research work from a variety of funding bodies including the UK's Money and Pension Service, the Aviva Foundation, Fair4All Finance, NEST Insight, the Gambling Commission, Vivid Housing and the ESRC, amongst others.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
