Tax grabbing Spring Budget 2021

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Tax grabbing Spring Budget 2021
« on: February 26, 2021, 11:35:25 AM »
Increases in:

Capital gains tax (CGT)
Corporation tax
Pension contributions: is higher-rate relief at risk
A potential increase in inheritance Tax (IHT)
Wealth Tax
The Stamp Duty Land Tax (SDLT)


Shaping up to be a budget which isn't going to go down well.

https://smithandwilliamson.com/en/insights/spring-budget-and-personal-tax-what-s-in-the-box/

https://www.telegraph.co.uk/business/2021/02/26/spring-budget-2021-rishi-sunak-when-announcement-date-time/

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Offline cyberia

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Re: Tax grabbing Spring Budget 2021
« Reply #1 on: February 26, 2021, 11:38:14 AM »
I'm failing to understand this current "Conservative" government. They act like communists leading a socialist party. The tax increases are plainly ridiculous and are going to act as a drain on enterprise and a disincentive to the working population.

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Offline cyberia

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Re: Tax grabbing Spring Budget 2021
« Reply #2 on: February 26, 2021, 11:55:16 AM »
Quote
The current standard rates of CGT are 10 per cent (to the extent the gain falls within the basic rate tax band or the gain is subject to business asset disposal relief, previously Entrepreneurs’ Relief) and 20 per cent thereafter (with the rate for gains on residential property and carried interest being 18 per cent within the basic rate tax band and 28 per cent thereafter).

Compared to the basic rate income tax band of 20 per cent and higher rate of 40 per cent (or 45 per cent for the highest earners), it is no surprise, as the OTS notes in its report, that this disparity creates an incentive for taxpayers to arrange their affairs in ways that effectively re-characterises income as capital gains. The OTS highlight that more closely aligning CGT rates with income tax rates has the potential to raise a “substantial amount” (£14 billion) a year for the Exchequer.

With the March Budget due amid a pandemic, some argue it is not the right time to be raising tax rates. However, the government is faced with the need to level the country’s finances and preserve its promise not to raise income tax, National Insurance or VAT. Taxpayers sitting on large CGT gains may well be nervous.

https://www.businessleader.co.uk/spring-budget-2021-is-a-rise-in-capital-gains-tax-cgt-likely/111752/

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Offline cyberia

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Re: Tax grabbing Spring Budget 2021
« Reply #3 on: March 03, 2021, 05:44:54 PM »
  • No changes to rates of income tax, national insurance or VAT
  • Tax-free personal allowance to be frozen at £12,570 from April 2021 levels to 2026
  • Higher rate income tax threshold to be frozen at £50,270 from April 2021 levels to 2026
  • Corporation tax on company profits to rise from 19% to 25% in April 2023
  • Rate to be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000
  • Stamp duty holiday on house purchases in England and Northern Ireland extended to 30 June
  • No tax charged on sales of less than £500,000
  • Inheritance tax thresholds, pensions life time allowances and annual capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-26
  • The rate of corporation tax, paid on company profits, is to rise to 25% from 19%, starting in 2023.

https://www.bbc.co.uk/news/business-56267284
https://www.bbc.co.uk/news/uk-politics-56266773