Reees will really swing to action on October 30, when her Autumn Budget will deliver a string of tax hikes to fill what she claims is a £22billion black hole. That’s just three months away, so take evasion action if you can.
During the election, Labour pledged not to increase income tax, national insurance or VAT, but that leaves plenty she can hike. Tom Walker, partner at specialist tax advisors Wellers, has named her most likely targets.
Capital gains tax
Reeves is almost certainly going to hike capital gains tax (CGT) rates in line with income tax. This would be the first time since 1989.
Today, higher-rate and additional rate taxpayers pay CGT at a maximum rate of 24%. If Reeves acts, the charge could suddenly jump to 40% or 45%.
Walker said this is highly likely and could happen overnight. Typically, chancellors introduce tax changes at the start of the New Year, but Reeves may take a different view.
She doesn’t want people scrambling to sell assets before the CGT hike, so could hike with immediate effect.
Labour reckons the measure could raise £8billion,…
