“Britain faces £40bn a year tax rises to stop debt spiralling“

Oct 13, 2020 | Tax

When I started work, basic rate tax was 33%, higher rate 60%. We thought Maggie’s cut to 30% was a result. And it wasn’t that things were cheaper, as inflation was hitting 20% or more. We’re all very used now to low taxes and election pledges never to increase them. So, break out the flares and platforms (or safety pins and bin liners, if you were of that persuasion kids etc.); it’s Back to the Future to the 70s. After the next election, before which there’ll be no pledges. I’d say.

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“HMRC scraps plans to tax pensions after death”

“HMRC scraps plans to tax pensions after death”

A couple of other Statement Highlights (in my world, anyway). A welcome ‘nothing happened’ on the treatment of pensions on death. They were never going to be liable to IHT (too complicated with trusts and trust law) but there was talk of making them income-taxable on the recipients at whatever age you die.

“Raising IHT threshold could cost government £6bn”

“Raising IHT threshold could cost government £6bn”

Well, the lesson of this week in politics must be to expect the unexpected. Or, alternative interpretation, to expect more of the same. The speculation on the future of Inheritance Tax has switched from abolition to a rise in the amount of wealth you can have before the 40% payment hits.