What taxes might be raised in the Budget?

Published On Jul 31, 2024, 7:01 PM

The article discusses potential tax policies that Labour's Chancellor Rachel Reeves may consider to address a shortfall in public finances. These include introducing "stealth taxes" by freezing tax thresholds against inflation, raising capital gains tax (CGT), increasing fuel duty, reducing pension tax relief, and reforming inheritance tax. Tax experts believe that extending the freeze on tax thresholds could generate significant revenue, while increasing CGT may impact entrepreneurs, and raising fuel duty could bring in needed funds but may be politically sensitive. There are mixed opinions on reducing tax relief on pensions and inheritance taxes given their potential disincentives for saving and their unpopularity. Overall, these proposed measures could significantly affect various sectors and taxpayers. Investors should consider the impacts of these changes on businesses and consumer spending.