Capital Gains Tax rates could double as Rishi Sunak covers cost of Covid spending | Personal Finance | Finance


Government borrowing is now expected to be more than £400billion higher in 2020/21 than pre-pandemic expectations, and many are wondering how the costs will be covered.

Tax changes are being speculated by many, however both Mr Sunak and the Prime Minister Boris Johnson have reportedly agreed to maintain the Conservative Party’s “triple tax lock” manifesto promise – meaning there will likely be no increase in Income Tax, National Insurance (NI) or VAT.

“With an agreement reportedly reached between Number 10 and the Treasury not to increase Income Tax, National Insurance or VAT rates in the forthcoming Budget, Chancellor Rishi Sunak must navigate a £400billion high-wire act with one arm firmly tied behind his back,” Tom Selby, senior analyst at AJ Bell, has commented.

“To one side he can see the fiery pit of economic disaster if the UK doesn’t get its financial house in order, while on the other is the molten lava of electoral disaster if he cuts too hard, too fast or in the wrong places.

READ MORE: Rishi Sunak could be planning ‘direct attack’ on pensioners in huge tax raid

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