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New and stealth taxes.


 Jeremy Hunt has warned that everyone in Britain will pay more tax as the government looks to close a £58 billion hole in the nation’s finances.

Freezing income tax thresholds

One of the vital tax-raising measures being planned is to freeze the rates at which people pay tax in a move that could bring in £30 billion a year by 2026. However, with inflation at about 10 per cent, more people will pay more taxes.


Reducing the threshold for the top rate of tax

Hunt plans to cut the income level at which the top 45p rate kicks in from £150,000 to £125,000, pulling thousands into the new maximum tax rate over the next four years. Moving the 45p rate threshold will raise about £1.3 billion a year.

Raising council tax

Hunt is considering raising this threshold to reduce pressure on services.

Cutting public spending

Hunt will announce that there will be no more money to help government departments with additional costs brought about by inflation. 

Reform capital gains tax

Higher rate taxpayers pay a 20 per cent rate on profits from assets such as shares and 28 per cent on residential property, such as second homes, above a £12,300 tax-free allowance.

Freeze the lifetime pension allowance

It means anyone with savings over this limit will be taxed at 55 per cent if the money is taken as a lump sum or 25 per cent plus income tax rate if taken out gradually.

Extended energy windfall tax

Rishi Sunak, when he was chancellor, imposed a 25 per cent levy on oil and gas company profits. Hunt is now expected to go further and increase this to 35 per cent and extend the length of the new tax until 2028. 

Dividend tax

Above this rate, higher-rate taxpayers pay a tax of 33.75 per cent on these profits. The Treasury is understood to have modelled a 1.25 per cent increase.

Freeze inheritance tax thresholds

On death, inheritance tax is paid at 40 per cent on estates worth more than £325,000 for an individual and £650,000 for a couple.

www.sba.tax

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  1. Greg14 November 2022 at 13:15

    All unpleasant taxes but somewhat expected. I understand the need for us to contribute more in these times by paying taxes but I also want some of this money to go to investments. Without investing in new factories and anything else that can create money in the future, without that, we aren't going anywhere.

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