Which tax rises could fill the £50bn black hole in Britain’s balance sheet?
Rachel Reeves struggles with various options in his hand to fill a hole of 50 billion pounds in public finance.
In the coming weeks, Chancellor will be presented with a series of potential tax hikes that will help balance books in their imposed financial rules.
In order to restore an almost 10 billion pound buffer in the current estimates, the National Economic and Social Research Institute (NIESR) must collect a total of £ 51.1 billion warned by the thinker.
And the budget of last October was a one -time one -time one – / he was on the road, if Mrs. Reeves returned to his word, faced the anger of voters, business chefs and investors.
The ministers squeezed significant savings from deductions that limit the maneuvering room of the chancellor and increase the possibility of tax hikes in the interruptions announced in the expenditure examination of June.
Here, Independent Take a look at the government’s options for collecting money and balancing books.
Mansion tax
Among the policies believed to be evaluated by the Chancellor is the so -called “mansion tax olarak that will hit the owners of high valuable properties with the capital gain tax when they sell their homes.
Reeves’ current exemption is said to be looking at the capital earning tax for primary houses.
Such a move saw that higher rates of taxpayers pay 24 percent of any income of their homes, while the basic rate of taxpayers would be hit with 18 percent tax.
The threshold is still taken into consideration, but the starting point of £ 1.5 million will hit approximately 120,000 hosts with higher rates of taxpayers, which are £ 199,973 capital -earning tax bills.
Stamp tax jolt
The treasury is expected to overhaul the stamp tax in the budget, but exactly how it remains uncertain.
Guardian While the landlords may have to pay a new tax for more than £ 500,000 home sales, those who bought more than £ 500,000 houses would pay an annual tax for the value of the house.
Currently, the stamp tax is paid for the first time by those who purchasers a home of £ 125,000 or £ 300,000 for buyers. A buyer who bought £ 500,000 for the first time would pay 10,000 £ stamp tax.
If accepted, the new tax would be paid by the workers who sold more than £ 500,000. The amount is determined as centrally based on the value of the property and was collected by HM income and customs (HMRC). It does not change stamp tax in the second houses.
Later, anyone who buys more than £ 500,000 houses will face annual tax on the property under bids.
The Treasury officials admitted that re -overcome stamp tax was a priority for the government, but despised the possibility of £ 500,000 to target property values.
Retirement raid
MS Reeves may also consider the discontinuation of the amount allowed to withdraw from the retirement containers in the budget.
Chancellor, civil servants, how much to be allowed to get out of the tax payment of the limit to reduce the limit of £ 2 billion will look at the bids.
Currently, pensioners can take one quarter of their retirement pots without tax without a limit of £ 268,000. It is quite controversial to reduce the level, but it can bring billions of pounds additional tax revenue each year.
Tax Threshold Ice Cream
A possible move will see that the Treasury has expanded the ice cream of income tax thresholds. This means that wages have increased with inflation, as workers have been dragged to higher tax groups and pay more for years.
A freezing of a higher 45 percent tax rate was one of the recommended options in the note leaked by MS Rayner. However, the government has speculation that the government can expand ice cream in all tax brackets.
Sir Keir left the door open for such a movement. Its effects are seen as a secret tax that is not immediately not felt, that is, it is easier for the government than taxes that cause direct strokes or plugs to enterprises. However, if the freezing is extended to the end of the parliament, it can bring billions of billions for the treasury as the earnings increase.
The ice cream, which is already planned to last until 2028, is expected to drag about two million workers to higher tax groups.
Deying tax
The Labor Party deputies on the left of the party were called to bring a growing leyt of leaving a growing tax after the government’s welfare of 5 billion pounds. Rachael Maskell, the rebellion architect forcing the government to shelve the lock columns of the bill, asked the government to increase the richest taxes for climbing.
Last month, the former workers’ shadow, Annelise Dodds, who put more pressure on the treasury, also called on the ministers to think of such a tax.
Downing Street sources argued that a reserve tax was not on the table, but there were mixed messages from ministers.
Other changes
The campaigns on the left have long been called for equalization of capital gains with income tax and believed that workers should not pay a higher tax than those who earn money through the appreciation of the value of assets.
The measure can be taken into consideration by the chancellor in front of the budget.
In addition, a proposal leaked by Angela Rayner may increase the company tax for banks with leaked suggestions. The Daily Telegraph.
Politically, it is easy to tax on banks because it has a direct impact on voters.
Mrs. Rayner also suggested that a company’s earnings by shareholders – tax rates for dividends for higher earnings – higher earnings.
Currently, the income tax is not paid tax on the dividend income that is included in your personal allowance. Every year there is a £ 500 dividend allowance, ie individuals pay tax on any dividend income on it. HMRC data will be completely worth £ 325 million per year.
However, there are concerns that increasing dividend tax rates can prevent people from investing in companies likely to have a clear negative impact on the economy.
