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Car tax update sees a 400% hike in costs for some

Since 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…

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Chancellor considers a new property tax to replace stamp duty

Chancellor 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…

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Revealed – UK’s biggest deliberate tax defaulters

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)…

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A new ’10p tax’ suggested to the Chancellor… by a billionaire

John 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…

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Just how many of the super-rich are fleeing the UK over tax hikes?

Concerns 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…

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Billions paid into cash ISAs

UK 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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Tax raid pulls in £300 million less than predicted

Chancellor Rachel Reeves’s £25 billion National Insurance hike brought in £300 million less than expected in its first two months. PAYE
income tax and employer NI contributions totalled £37.2 billion in May – up 9.5% from last year but £200 million below forecast.

May borrowing hit £17.7 billion, exceeding the OBR forecast by £600 million and up £700 million from last year. Despite higher tax receipts (£82.5 billion in May), spending outpaced revenue
due to inflation-linked benefit increases and running costs.

Given the shortfall in expected…

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“Time for a wealth tax”, say the rich.

The 2025 Sunday Times Rich List reveals that a small group of 350 families
control £772 billion in wealth – enough to fund the UK’s annual healthcare budget three times over.

The group Patriotic Millionaires is urging the UK government to introduce a wealth tax to address inequality and invest in public
services like the NHS. Julia Davies, a member of the group, argues that concerns over billionaires leaving the UK are misplaced and
that focus should shift to real issues like healthcare.

Here’s a structured…

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Reeves urged to launch tax raid on landlords

Labour MPs and influential advisers are urging Chancellor Rachel Reeves to ‘launch a tax raid’ on
landlords as part of efforts to fill a fiscal gap without breaking the party’s manifesto commitment against increasing taxes on ‘working people’.

There are three proposed tax measures:

– Charging National Insurance on Rental Income:
Unlike most earnings (from employment or self-employment), rental income is classified as passive and isn’t subject to National Insurance. Imposing NI on
it would align landlords’ income closer to other forms of employment earnings.

-…

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Reeves under pressure to create wealth tax

The financial pressures facing Chancellor Rachel Reeves continue to mount, particularly
regarding a projected £57 billion shortfall in the country’s finances.

Public sentiment is shifting towards tax increases on wealthier individuals, with 48% in a recent poll (by BMG Research) supporting higher income
taxes on those earning over £125,000. 29% backed a rise in capital gains tax whilst 26% supported an increase in corporation tax.

Alternative tax proposals include a 2% annual levy on assets over £10 million, which it is claimed could generate £24 billion…

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