What the Budget might mean for taxes

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Reports that Boris Johnson and the new chancellor, Rishi Sunak, are preparing tax rises in the budget on 11 March have raised concerns within the Conservative party.

Several proposals have been aired in the media, including two that would have been anathema under previous Tory administrations: a fuel duty rise and the imposition of a mansion tax.

1. The Conservative party has not formally outlined plans for a mansion tax but reports have floated the possibility of one being introduced.

2. Mooted at the same time as the mansion tax, No 10 is reportedly considering a UK-wide home revaluation to squeeze more out of the council tax.

3. Britain’s 37 million drivers could face the first fuel duty rise in a decade next month. The budget could add 2p to the cost of a litre of petrol and diesel.

4. The Treasury has drawn up plans to cut the rate of relief for higher earners from 40% to 20%, a move which would raise £10 billion per year. At present, people can put up to £40,000 into their pension per year and do not pay tax on that contribution.

5. Inheritance tax forces estates to pay 40% tax on assets worth more than the £325,000 threshold or £475,000 if the asset is a home that is left to children or grandchildren. A spouse or civil partner can inherit the tax break, doubling the threshold to up to £950,000. Many business assets, including farmland, can be excluded from the calculation of taxable wealth, lowering the charge even further for many wealthy households. No 10 is reportedly considering including those assets in the inheritance tax remit.

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Source: https://www.techlink.co.uk/

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