Budget predictions: Personal tax
Blick Rothenberg's experts have their say on what the Chancellor could announce ahead of the first ever Autumn Budget.
Capital Gains Tax ("CGT")
- The Chancellor could align the NIC 0% band with the personal allowance, giving lower paid workers a small NIC saving whilst simplifying the system. This could be the approach if Philip Hammond wishes to implement his 'Age Tax' – by only increasing the 0% band for those workers under the age of 40. This would save the 'young worker' about £400 a year in NIC (i.e. £11,500 - £8,164 *12%). But it would need to be funded, possibly by an increase in the 2% NIC above £45,000, for example, to 3% for individuals over 40. This mechanism is just another example of a convoluted tax system. (Robert Pullen, director)
- The Chancellor is likely to announce an increase in CGT to 40% with effect from 6 April 2018 to encourage a windfall in CGT as people get transactions done before the tax year end. (Caroline Le Jeune, partner)
- Owing to poor take-up, the Chancellor will abolish the marriage allowance and replace it with an enhanced personal allowance for basic rate tax payers. (Nimesh Shah, partner)
- The Chancellor will increase the threshold at which graduates start repaying their tuition fee loans from £21,000 to £25,000. (Nimesh Shah, Partner)
For more information please contact Robert Pullen
, Caroline Le Jeune
or Nimesh Shah.