Fool.co.uk Press Releases
21 March 2012

Budget 2012: Don’t let politically-driven tax measures derail your investments

The Motley Fool comments on the Budget 2012

David Kuo, Director at The Motley Fool - an online investing community at Fool.co.uk says:

The Budget should aim to achieve three things today: It should continue with the deficit-reduction plan; it should spur economic growth and it should maintain political harmony within the coalition.

It is possible to achieve all three and still remain fiscally neutral. In other words, every tax giveaway should be balanced by a tax claw-back elsewhere to enable the UK to maintain its triple-A credit rating.

The Budget is unquestionably a key event in the UK political calendar. However, investors need to appreciate that Budgets have little impact on the performance of shares.

The FTSE 100 index, for instance, is a barometer of the health of global economies. What happens in the UK and the UK economy is largely unimportant to the UK’s blue chips given that their main source of revenues and profits come from abroad.

Do, however, make a note of the increase in ISA allowances and other incentives that encourages saving and investing for the long term. But don’t be distracted by politically-driven tax measures because investing is more important than that.”

-ENDS-

For further information and/or to arrange an interview with David Kuo, please contact: Sonia Rehill on 020 7462 4308 or Soniar@fool.co.uk

An ISDN line is available for radio interviews

About The Motley Fool (UK)

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