Truss plans more tax cuts next year, says daily

LONDON: UK prime minister Liz Truss plans to introduce more tax cuts in the new year, adding to reductions announced this week, the Telegraph reported without saying where it obtained the information.

The new tax cuts will include further reductions in income tax and discounts for savers and child benefit claimants and are likely to be announced as part of a full budget next year, the newspaper said.

Chancellor of the Exchequer Kwasi Kwarteng announced on Friday a tax review, alongside the biggest reduction in taxes by a budget since 1972.

Treasury officials are drawing up a list of “pinch points” that discourage Britons from earning more.

This is a part of the review of the tax system, according to the report.

Further tax cuts could add to pressure on the pound. The £220bil (RM1.1 trillion) policy blitz announced on Friday sent the pound crashing below US$1.11 (RM5.1) for the first time since 1985 and drove five-year gilts to their biggest ever daily decline.

A review of the lifetime and annual allowances on pensions, which currently encourage employees to retire early to avoid a “tax trap,” could benefit as many as 1.6 million savers, the Telegraph said.

Workers who earn more than £100,000 (RM497,000) would also be given a full income tax personal allowance, amounting to a tax break worth up to £5,000 (RM24,850) a year for the highest earners, according to the report.

The minister is also considering doing away with a charge for those who make more than £50,000 (RM248,500) and claim child benefit, the newspaper said.