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Budget could be focused on wealth

Wealth taxes could rise following the Budget later this month
Budget could be focused on wealth
  • Chancellor Rishi Sunak has indicated that he will fund spending pledges through tax rises
  • Given the recent announcement on the health and social care levy, wealth-based taxes could be set to rise

It’s not an easy time to be Chancellor of the Exchequer. Rishi Sunak has racked up an enormous bill during the course of the pandemic and already hiked a number of taxes to help pay for it. Last March, he set out a plan to raise corporation tax to 25 per cent from 1 April 2023 and has frozen income, capital gains and inheritance tax thresholds until at least 2026. The pensions lifetime allowance has also been frozen at £1,073,100 until 2026. And last month the government announced a manifesto-breaking 1.25 per cent rise in National Insurance contributions and dividend taxes from the start of the next tax year, to fund health and social care. 

Sean McCann, chartered financial planner at NFU Mutual, thinks that although “the chancellor is unlikely to hit earnings again [he] may instead focus his attention on wealth taxes in order to raise cash”.

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