Whats More Scary And Spooky Than Halloween This Year - The Budget

6th October 2024

There has been huge amounts of speculation about the coming UK budget and what is going to be in it.

The government came to power promising no changes to Income Tax, VAT and Corporation Tax but there a wide range of potential horrors that could still be coming depending on your personal circumstances.

At the fore in the rumour mill are changes to capital gains tax and Inheritance tax. Inheritance tax changes may include higher rates, lower thresholds, and the removal of reliefs on business and agricultural assets. Some may be frightened by that government may cut or lower the residential nil rate band which currently allows homeowners to extend their nil rate band by up to £175,000, or £350,000 if they are a couple, if they leave their main home to their children.

Eerie warnings that the chancellor may borrow more pushing up interest rates that could affect mortgage rates by over 1 percent.

Hubble bubble toil and trouble as benefits may come under more scrutiny and changes to force more people back to work.

Another big scare is the speculation that tax reliefs on pensions may be reduced to take more in Taxes. The Government is considering a flat 30% rate of pension tax relief proposed by Treasury officials, which has previously been endorsed by Rachel Reeves, or relief may be capped at 20% being the current basic rate of relief.

Heading into the darkness - There are discussions that the Government might reduce the amount eligible for tax relief or scrap the benefit entirely. If you are considering withdrawing tax-free cash from your pension pot it may be appropriate to do so ahead of the budget. Scary to know which way to go.

A wealthy tax has apparently shivered off as unlikely to cause a cold.

For foreigners buying property in the UK there might be an increase to the SDLT surcharge on overseas nationals buying UK residential property from 2% to 3%.

If that aint enough scary stories than the thunder and lightning will follow with the Scottish Budget later in the year.

And after that the real scars will come with the council budgets that are likely to see the worst stories and nightmares ever seen in the last 20 years.

In the wind the possibility of making pensioners pay National Insurance - that would be a really big scare.

In the mix with apples and nuts - a Graduate Tax. Oh yes it is being talked about - so much for education. Keep stirring the treacle before we get dookin for apples.

Happy Halloween