Fall 2021 budget: what time is Rishi Sunak’s speech and what will be announced?

0
39

Housing tax increase – 9/10

The housing tax has increased every year for the past 10 years under the Tories and it is likely that the Chancellor will allow town halls to increase local levies again, this time up to 5pc. This would push the annual municipal tax bill for the average D-Band property to almost £ 2,000.

Alcohol tax changes – 7/10

The price of a pint could change as part of a shake-up in the alcohol tax, following a review announced in the 2020 budget. The Treasury has asked for advice on overhauling the archaic taxes on the beer, cider, wine and spirits. Beverage taxes, which bring in £ 12 billion a year, date back to the 1600s.

See also  What experts expect from the ECB's 12-point plan for the crisis of racism in cricket

The changes could include standardizing different tax rates for different types of alcohol or increasing alcohol taxes each year based on inflation. Other options include different prices depending on where the drinks are sold, such as lower prices for pubs than for supermarkets. Rights on beer, cider and spirits have been frozen since 2017.

Retreat Raid – 4/10

Experts have suggested that the state could raise significant funds by reducing tax breaks on pension savings for high incomes or by capping the amount workers can set aside for retirement.

The Tories have cut the ‘lifetime allowance’ by around £ 800,000 since the 2010 coalition. However, such changes would prove hugely unpopular and likely will not follow the recently announced increases in national insurance contributions and benefits. dividend tax rate.

See also  Vaccines received abroad by frontier workers now recognized

Graduate tax – 5/10

Graduates are at risk of losing hundreds of more pounds to student loan repayments. Mr Sunak is rumored to consider lowering the income threshold at which student loans must be repaid to around £ 23,000, from £ 27,000 – a move that would raise around £ 2 billion a year.

This would undo an earlier increase in the threshold, which was previously £ 21,000, implemented under former Prime Minister Theresa May. However, few details of the reported plans have been made public.

See also  2021 Mexican Grand Prix: What time is the F1 race, what TV channel is it on and what are the odds?

Capital gains and changes in inheritance tax – 3/10

Likewise, experts have suggested that capital gains tax rates could be increased to align with income tax, from 28% to 40% for a higher rate taxpayer.

They also suggested that valuable inheritance tax breaks, such as the 100% exemption on Aim shares, could be removed to rake in funds. However, the CGT and IHT raise less than £ 16bn a year combined – a fraction of the £ 200bn a year that income tax increases.

Residential Developer Tax – 9/10

New tax on home builders earning more than £ 25million per year will help with costs of removing hazardous ‘Grenfell style’ coatings from apartment buildings

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here