Chancellor Rachel Reeves has set the date for the Government’s Autumn Budget. It will take place on the 26th of November. Speculation over tax reforms has begun to ramp up as Ms Reeves is under increasing pressure to grow the economy and fill the huge hole in the public finances. Here are eight potential proposals:
– Inheritance Tax (IHT) – A lifetime cap on tax-free gifts (e.g., £100k or £200k), which could result in significant IHT bills for heirs if…
Read MoreChancellor Rachel Reeves announced changes in her October 2024 Budget that would reduce inheritance tax relief for farms and family-owned
businesses. Starting April 2026, these entities will receive a £1 million exemption. Any assets above that threshold will face a 20% inheritance tax.
A group of farmers and business owners is seeking a judicial review. They argue the government failed to conduct a proper consultation before finalizing the policy, saying that the consultation
held between February and April 2025 was deemed too narrow and technical.
The…
Read MoreHM Revenue and Customs (HMRC) revealed that it suffered a phishing attack that led to the compromise of around 100,000 personal
tax accounts. The incident was described by HMRC officials as ‘organised crime’, targeting identity data outside HMRC systems.
Scammers managed to extract £47 million through fraudulent PAYE repayments. The breach involved individual PAYE accounts, not corporate ones, and accounts for 0.2% of the PAYE population.
Despite the breach, affected individuals have not suffered financial loss, according to HMRC. They stated that ‘This was organised crime…
Read MoreMaking Tax Digital (MTD) for Income Tax begins in April 2026. It will initially affect sole traders and landlords earning
over £50,000 annually. The thresholds will gradually lower to £30,000 in 2027 and £20,000 in 2028.
MTD will require the use of MTD-compatible accounting software for Income Tax Self-Assessment (ITSA). Quarterly tax submissions will be made instead of a single annual return.
This government initiative to modernise the tax system by digitising records and submissions was originally announced in 2015, and aims to reduce errors, save…
Read MoreSince April 2025, HMRC has reclassified double cab pick-up trucks as cars rather than commercial vehicles.
Previously, pick-ups with payloads over 1,000kg were taxed as commercial vehicles, allowing drivers to pay a fixed Benefit-in-Kind (BiK) rate – regardless of luxury
level. These vehicles will now be taxed based on CO₂ emissions, placing many in the highest tax brackets due to their size and poor aerodynamics.
Only double cab models with rear seats are impacted; single cab commercial variants remain unaffected. For example: a Ford Ranger…
Read MoreChancellor Rachel Reeves is exploring a new proportional property tax targeting homes worth over £500k.
This would replace stamp duty for owner-occupied homes, but not for second homes. The tax would be paid upon sale, with rates set by central government and
collected by HMRC.
Officials are also studying a local property tax to potentially replace council tax in the future. This tax reform would likely require Labour to win a second
term, as implementation would take longer. The move aims to tap into the…
HMRC has named over 4,000 deliberate tax defaulters since 2015, collectively owing more than £1.5 billion.
These individuals or firms were penalised for deliberate errors in tax returns or failing to meet tax obligations. Here is the sector breakdown:
Hospitality: 21% of defaulters (e.g. takeaways, pubs, cafes).
Construction & Trades: 19% (e.g. plumbing, plastering).
Recruitment/Payroll firms: 5 of the top 10 defaulters, owing £145 million.
Haulage & Freight: 112 defaulters owing £33.5 million.
Metals & Recycling: Notably concentrated in Yorkshire, with £60.4 million owed.
Other sectors include adult entertainment (£783k)…
Read MoreJohn Caudwell, billionaire and Phones 4u founder, has urged Chancellor Rachel Reeves to introduce a 10p per
litre tax on petrol and diesel. He claims this could raise £20 billion for the Treasury and help avoid other unpopular tax hikes. His rationale behind the proposal
is that fuel prices have dropped from ~190p to ~140p per litre, creating what Caudwell sees as fiscal ‘headroom’ for taxation.
It is true that fuel is now cheaper in real terms than at any point in the past 20…
Read MoreConcerns over Chancellor Rachel Reeves’ tax policy shift, scrapping tax benefits for non-domiciled residents (non-doms),
has prompted concern amongst high earners. Legal experts warn that UK-based wealthy individuals – not just non-doms – are now considering leaving the UK to reduce their tax liabilities.
Some believe the policy change could cost the Treasury up to £12.2 billion by 2030, despite increased scrutiny from HMRC, especially around statutory residence tests and claims of full-time
overseas work, to ensure the correct amount of tax is collected.
However, claims…
Read MoreUK savers deposited a record £14 billion into cash ISAs in April 2024, the highest monthly figure since ISAs were introduced in 1999.
The surge is attributed to fears of potential changes to ISA rules under Chancellor Rachel Reeves.
Speculation arose that Ms. Reeves might reduce the tax-free allowance for cash ISAs. Although she confirmed the £20,000 annual ISA limit will remain, she hinted at curbing the cash portion
to encourage investment in stocks and shares.
Ms. Reeves aims to boost economic growth by shifting savings…
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