Personal tax
- Could the personal allowance be reinstated for all? Since 2010, those earning £100,000 started losing their personal allowance by £1 for every £2 of income earned over that threshold, creating an effective rate of tax of 60% between £100,000 and £123,700. Is now the time to reinstate the personal allowance in order to restore equality to the personal tax system, simplify the overall calculation and remove this unfair spike? The additional rate of tax of 45% applies for someone earning over £150,000. This threshold has remained the same since its introduction in 2010 and it should be increased alongside the other band increases or at least in line with inflation.
- No new tax policies announced – whilst this would be surprising, it’s a possibility. Since Philip Hammond’s appointment as Chancellor, the number of new tax measures introduced have on average been lower.
Given the continued uncertainty with the Brexit course, the Government may be wise to not make any changes to tax at all.
SDLT and property
- Another rate of Stamp Duty Land Tax (“SDLT”) is being suggested by the Government, this time applying to overseas buyers. If taken forward, it is yet another complication on what used to be incredibly simple tax. Careful thought also needs to be given as to whether this is the right measure, as a number of large property developments are effectively funded through overseas investment. Could such a measure have the effect of reducing much needed housing supply?
For more information, please contact Nimesh Shah or, if you have any press queries, please contact David Barzilay.