The British government is examining fiscal measures to balance the budget to be presented next week, such as an increase in inheritance tax, income tax or exceptional tax on the energy sector. )
Finance Minister Jeremy Hunt is expected to extend the current freeze on inheritance tax caps by two years until 2028, multiple news outlets reported on Tuesday.
In the context of inflation, this would mechanically push some households into a higher tax bracket and lead to an increase in tax revenue.
Such a move on inheritance could be combined with a freeze on other taxes such as income, pensions and capital gains, and could raise billions of pounds in government coffers without requiring any tax rises, according to the Financial Times.
On November 17, Minister Hunt is expected to present measures in an attempt to reassure markets, nervous about Liz Truss’s previous and interim government’s plan, which included tax cuts and massive aid to ease energy bills.
Hunt has already backed away from most of his measures, with corporate tax set to rise from 19% to 25% next year.
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© Agence France-Presse
Jane Austen is a writer and contributor covering culture, literature, lifestyle, and society. Her work focuses on thoughtful storytelling, social trends, and the issues shaping everyday life, delivering engaging and accessible content for readers across the United Kingdom.
