Fall 2022 statement: when is it and what taxes will Jeremy Hunt raise?

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How much will it cost me?

Mr Hunt is reportedly considering cutting the £12,300 tax-free allowance in half from £12,300. If this falls to £6,000, a higher-rate taxpayer selling homes will pay 28 per cent on the difference – which works out to an additional £1,764 if the gain exceeds £12,300.

Officials have also tabled an increase in the nominal rate given the size of the budget deficit. Mr Sunak previously considered raising the CGT to bring it in line with income tax, a foray estimated to have raised £16bn.

Assuming the capital gains tax is in line with the income tax – as previously recommended by the government’s tax advisor – higher rate property investors would pay 40 per cent. pay on profits, instead of 28 pc.

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It would mean that a rental landlord who is a higher taxpayer who bought a property in August 2017 for £226,000, the median property price at the time, and sold it today for £296,000 would pay an additional £8,400 in tax on a gain of £70,000, according to analysis by tax firm Blick Rothenberg.

VAT stop extended

The Chancellor is preparing to hold the threshold at which businesses must register to pay VAT on £85,000 worth of sales until 2026, rather than raise it in line with inflation.

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How much will it cost me?

The plans mean thousands more small businesses will pay their first-time taxes as their sales grow in line with rising prices.

That threshold has already been frozen until 2024, but Mr Hunt and Mr Sunak are considering extending it for another two years. VAT is charged at 20pcs.

Municipal tax increase

The chancellor is also drawing up plans to allow town halls to raise council tax by 5 percent without holding a local referendum.

Under current rules, municipalities responsible for social care are allowed to increase their rates by 2.99 percent. This includes an allocation of 1 pc for social care expenditures.

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If these authorities want to increase the levy further, they must hold a referendum. However, the new plans would allow municipalities to raise their taxes by 4.99 percent without a vote.

How much will it cost me?

This means millions of homes in band D can pay up to £100 extra, paying annual bills in excess of £2,000 for the first time. Households in the upper band H can pay up to £200 extra, and more than £4,000 a year in total.

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