An increase in Capital Gains Tax (CGT) is being considered Chncellor Rishi Sunak to bring it into line with the higher income tax rate at the next Budget.
The highest rate for CGT is currently at 28% but could go up to 40% or 45% on additional properties and people investing in buy to let and holiday properties will be heavily impacted.
The Autumn Budget in November 2020 will reveal several taxation changes in a bid to help strengthen the nations finances to pay for Covid-19.
The Office for National Statistics reported in July that the UK’s National Debt was at a record high of £2.004 trillion. The aim is to raise an extra £20 billion to £40 billion a year.
There is nothing to suggest that HM Treasury is considering extending the current stamp duty holiday past 31st March 2021.
Simplifying Inheritance Tax on estates and a rise in Corporation Tax is also rumoured to being considered.
We have said it before and we say it again. The Chancellor will obviously go for the 'lowest hanging fruit' i.e. attack 'middle England' wealth on investment property, pensions tax relief and probably income taxes using frozen allowances across all. We can also see the state pension triple lock link to earnings inflation, consumer prices and minimum fixed % increases disappearing.