economy
Rachel Reeves Just Won't Quit
She hit us with one tax after another during her two-year wrecking spree, but they haven't all come into force. Some of the most punishing will land next year, with still coming our way after that. Incredibly, even if today's Labour Chancellor John Healey doesn't increase a single tax in his Budget on October 28, millions will still pay more tax next April, thanks to the efforts of his predecessor.
TL;DR
- Rachel Reeves introduced approximately £70 billion in new taxes affecting jobs, incomes, savings, pensions, and inheritances.
- Many of these tax increases have not yet come into force and are scheduled to impact millions starting next April.
- Taxes on non-ISA dividend income, savings interest, and rental property income are set to increase.
- The Cash ISA allowance for under-65s will decrease from £20,000 to £12,000 from April.
- Unused defined contribution pension pots will become liable for inheritance tax next April, potentially affecting an additional 10,500 estates.
- A tax raid on pension salary sacrifice is scheduled to come into force in 2029.
- The IMF expects the UK's tax take to rise from approximately 38% to 42.1% of GDP by the end of the current Parliament.
- Financial advisors suggest utilizing ISAs, pension contributions, and gifting allowances to manage the tax burden.