British finance minister Rachel Reeves is gearing up to address the 22 billion pound hole in the public finances left by the previous government. With the looming budget presentation in October, Reeves is considering various tax options to boost revenue without burdening “working people”.
Reeves plans to focus on increasing Capital Gains Tax (CGT), inheritance tax, pension reforms, and fuel duty. By tweaking CGT rates and reintroducing indexation, Reeves aims to generate 7.5 billion pounds. Similarly, reforms to inheritance tax allowances could raise another 2.7 billion pounds. Additionally, adjusting pension tax reliefs and potentially eliminating the tax-free lump sum could contribute 5.5 billion pounds.
Another area under consideration is fuel duty, which has been frozen since 2011. Reeves may end this practice to enhance the government’s environmental image and bolster public finances.
Published 31 July 2024, 17:36 IST