Bud­get brief­ing: the taxes in the Chan­cel­lor’s sights next week

The Daily Telegraph - Your Money - - FRONT PAGE -

We look at Philip Ham­mond’s op­tions – and as­sess the like­li­hood of var­i­ous tax changes

The Gov­ern­ment un­veils its first au­tumn Bud­get next Wed­nes­day – and it will aim to re­pair some of the dam­age the Con­ser­va­tives suf­fered in the gen­eral elec­tion. The Chan­cel­lor may seek to ad­dress the party’s lack of pop­u­lar­ity among young peo­ple by rais­ing taxes that typ­i­cally af­fect older vot­ers who have pen­sions, prop­erty and other as­sets.

So where might the knife fall? Here we set out the Chan­cel­lor’s op­tions – and es­ti­mate the like­li­hood of each com­ing to pass. which in­vest in start-up busi­nesses, are given a 30pc in­come tax break.

The perk cost the Gov­ern­ment £171m last year. It is pos­si­ble that the tax re­lief could be cut to 20pc, or the to­tal tax re­lief avail­able cut from its cur­rent £200,000 a year. Like­li­hood: 6/10 April next year. There is now talk of a fur­ther cut to the tax-free limit or an in­crease in the tax rates on div­i­dends as a “quick win” for Mr Ham­mond. Like­li­hood: 6/10

First-time buyer Hope Thor­ley, above, says she could fur­nish her new home with the money from a stamp duty cut Hope Thor­ley, 27, and her part­ner are due to com­plete the pur­chase of their first home at the end of this month.

They are buy­ing a prop­erty in Lough­bor­ough for £235,000. Un­der the cur­rent rules their stamp duty bill would be £2,200.

Ms Thor­ley, who works in re­cruit­ment, said hav­ing that cash avail­able if stamp duty for first­time buy­ers were scrapped in the Bud­get would al­low them to fur­nish their home. She said she and her part­ner did not have much spare cash be­cause their en­tire fo­cus had been on sav­ing for a hefty de­posit.

“That £2,200 would go a long way. I know it doesn’t sound like much, but it would be sig­nif­i­cant for us,” she said.

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