The next tax hike is coming for YOU – an expert explains how the Conservatives could raise taxes AGAIN.
Prime Minister Boris Johnson stated in his 2019 election campaign that taxes would not rise during his five-year term, therefore the Conservative government’s tax hikes have come as a shock to the British public. But, according to one analyst, there could be even more tax spikes in the future.
The UK will see a 1.25 percent hike in National Insurance starting in April to compensate for the country’s failing social care system, as well as the backlog in NHS waiting lists caused by the coronavirus outbreak. However, there are rumors that Chancellor Rishi Sunak will go further.
Economists believe that further tax increases will be forthcoming, since the social care sector will require billions more as cost pressures mount.
Taxes such as Capital Gains, Inheritance, and the State Pension are all expected to alter in the Autumn Budget.
However, tax experts are divided on whether the Chancellor will increase the burden on the taxpayer.
“We don’t expect any huge tax bombshells in this autumn budget since they have already been delivered,” MHA partner Nigel May told this website.
“Rishi Sunak has already enacted two big tax increases: a 19 percent rise in corporate tax to 25%, the highest mainstream rate of corporation tax since 2011, and the Health and Social Care Levy plans (HSCL) unveiled earlier this month.
“These actions run against to a Conservative government’s innate tax-cutting aim, but we live in extraordinary times.”
“The HSCL ideas will almost certainly have lost the government major political capital in terms of backbench and grassroots support.”
“As a result, additional sweeping tax measures are unlikely.”
Mr May, on the other hand, claims that some taxes may still be debated.
Pensions, Capital Gains Tax (CGT), and Inheritance Tax may all face tax increases in the near future, according to him.
“Since the major adjustments in 2006, pensions have been a reoccurring concern,” Mr May added.
“However, the potential of unintended repercussions from changes to the pension system makes such reforms a risky proposition for legislators.”
“It would be easy to modify CGT rates, but it would not raise much.”
“Many of the latest tax measures appear to include a ‘back,” according to Brinkwire Summary News.