Reforms to IHT, CGT and NI ‘could raise over £20 billion a year’

    Luke Mudd
    22nd October 2024
    Home » Categories » Tax » Reforms to IHT, CGT and NI ‘could raise over £20 billion a year’

    The Resolution Foundation has suggested that reforms to inheritance tax (IHT), capital gains tax (CGT) and national insurance (NI) could raise more than £20 billion a year.

    The Foundation said that the reforms could also pass a ‘triple tax test’ of improving tax efficiency, making sure that tax rises fall on those with the broadest shoulders.

    It said that Chancellor Rachel Reeves has ‘greatly limited’ her revenue raising options by pledging not to raise the main rates of income tax, corporation tax, VAT or NI.

    According to the Resolution Foundation, CGT is ‘ripe for reform’ as rates are ‘unjustifiably lower’ compared to those on other forms of income.

    Adam Corlett, Principal Economist at the Resolution Foundation, said:

    ‘There is widespread speculation about what might be in the first Budget of the new Parliament, but overall tax rises are a dead cert and time-honoured tradition.

    ‘Long overdue reforms to IHT, CGT and pension contribution reliefs would fit the bill and could raise over £20 billion if needed, while also making the tax system fairer and more consistent between different taxpayers.’

    Internet link: Resolution Foundation website

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Labour market challenges remain as wages grow

    The UK labour market remains challenging as employers cut staff numbers and wage growth accelerated, according to the latest data from the Office for National Statistics (ONS). Average weekly earnings…

    IMF upgrades UK’s economic outlook

    The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year. The global institution upgraded its prediction for UK growth to 1.6% for this year…

    SWFS Q & A – Nvidia and tech sell-off

    How has the recent Nvidia and tech sell-off impacted your portfolio? This week, we briefed our clients and financial planners on: ✅ What happened on Monday✅ How our Investment Committee…