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