Latest news with #autumnbudget
Yahoo
3 days ago
- Business
- Yahoo
Should the UK introduce a wealth tax? Have your say
The UK government has faced calls to introduce a "wealth tax", as chancellor Rachel Reeves looks at ways to raise revenue ahead of the autumn budget to plug a hole in public finances. Higher borrowing costs, low economic growth and the recent u-turn on welfare spending cuts have added to pressure on public finances, raising speculation that Reeves will be forced to raise taxes in the autumn budget to balance the books. To help the UK's financial situation, former Labour leader Neil Kinnock recently suggested that the government impose a 2% tax on assets valued above £10m. This was something put forward by a group of cross-party MPs in letter to Reeves ahead of her first autumn budget last October. Reeves has refused to rule out a wealth tax in the upcoming autumn budget, though business secretary Jonathan Reynolds said on Friday that such a levy would be "daft". Read more: UK set to lose 16,500 millionaires this year as non-dom status ends One concern that has been raised about introducing a wealth tax is that this could prompt more high-net-worth individuals to leave the UK. A report released by Henley & Partners last week showed that the UK is already expected to suffer the largest outflow of millionaires globally in 2025. The Henley Private Wealth Migration Report 2025 forecasts a net loss of 16,500 high-net-worth individuals (HNWIs) from the UK this year, the highest such outflow ever recorded by the firm in the past decade of tracking global wealth migration trends. Juerg Steffen, CEO at Henley & Partners, said: "For the first time in a decade of tracking, a European country leads the world in millionaire outflows. 'This isn't just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere." In April, the Treasury confirmed plans to abolish the longstanding non-domicile regime, a move widely seen as a trigger for an accelerating outflow of wealthy residents. At the same time, an analysis published in June by the Tax Justice Network found that the 9,500 millionaires that were reported to be leaving the UK in 2024 represented just 0.3% of the UK's 3.06 million millionaires. Do you think the UK should introduce a wealth tax? Vote in the poll below. Yahoo UK's poll of the week lets you vote and indicate your strength of feeling on one of the week's hot topics. After the poll closes, we'll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK in to access your portfolio
Yahoo
14-07-2025
- Business
- Yahoo
Do you trust your partner enough to give them money for tax purposes?
The starting pistol has been fired on tax speculation ahead of the autumn budget. The fact that cutting spending has proved so thorny makes tax rises more likely, in order to balance the books, so the debate is flowing thick and fast about where the pain could be felt, and what people can do to protect themselves. One option is for couples to plan together, and share savings and investments in order to keep their tax bill down. However, this requires some serious trust. If they share everything between them, it means both parties can take advantage of their ISA and pension allowances. If they hold anything on top of this, by splitting it, they might be able to stay within their annual tax-free allowances. If anyone other than married couples or civil partners do this, there could be tax to pay on the transfer — but if they're married, there's no immediate tax bill. Read more: How to start investing with an employee share scheme The good news is that according to research from Hargreaves Lansdown with Opinium, almost three quarters of people trust their spouse enough to share their savings and investments like this, in order to take advantage of tax rules. The more assets someone has, the more likely they are to trust their spouse with some of them — with 79% of savers and 84% of investors saying they would be happy to share assets to save tax. Higher earners are also more prepared to hand over their cash — including 82% of higher rate taxpayers. This will be influenced by the fact they have more to gain from the move. If you don't think you can trust your partner, it pays to listen to your gut, because sharing assets comes with risks. If you've handed money over, you'll have given it away entirely, so you will no longer have any control over it. Your partner will be free to make any decisions they want with it, moving investments or savings, or spending as much as they fancy. You have to ask yourself whether you're prepared to relinquish that control. Read more: How to save money on your council tax bill You also need to appreciate your position if you get divorced. You may be able to come to an agreement about division of assets, or the courts will divide your estate up in a way it believes is fair. However, that doesn't mean you'll get this money back on the grounds it was yours in the first place. Any court will prioritise need and start with equality, so might not see a significant chunk of these assets again. There's also the possibility that an estranged spouse will spend as much of the money as possible, in order to reduce your settlement. It means that while sharing your assets can be a great way to cut your tax bill and save money, it's important to think long and hard about it first. Losing a chunk of money to the taxman is bad enough, but losing all of it to a partner who turns out to be untrustworthy would be even worse. Read more: How much money do you need to retire? How to avoid finance scams on social media Why you can trust an 18-year old with their junior ISA – and how to create one
Yahoo
13-07-2025
- Business
- Yahoo
Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget
Another hint that tax rises are coming in this autumn's budget has been given by a senior minister. Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government's failed welfare reforms, which were shot down by their own MPs. Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week - including on an away day on Friday. Politics Hub: Tax increases were not discussed "directly", Ms Alexander said, but ministers were "cognisant" of the challenges facing them. Asked what this means, Ms Alexander added: "I think your viewers would be surprised if we didn't recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out. "We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that." Ms Alexander said she wouldn't comment directly on taxes and the budget at this point, adding: "So, the chancellor will set her budget. I'm not going to sit in a TV studio today and speculate on what the contents of that budget might be. "When it comes to taxation, fairness is going to be our guiding principle." Read more: Afterwards, shadow home secretary Chris Philp told Phillips: "That sounds to me like a barely disguised reference to tax rises coming in the autumn." He then went on to repeat the Conservative attack lines that Labour are "crashing the economy". Mr Philp then attacked the prime minister as "weak" for being unable to get his welfare reforms through the Commons. Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms. Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes. With the savings from these proposed changes - around £5bn - already worked into the government's sums, they will now need to find the money somewhere else. The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.
Yahoo
13-07-2025
- Business
- Yahoo
Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget
Another hint that tax rises are coming in this autumn's budget has been given by a senior minister. Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government's failed welfare reforms, which were shot down by their own MPs. Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week - including on an away day on Friday. Politics Hub: Tax increases were not discussed "directly", Ms Alexander said, but ministers were "cognisant" of the challenges facing them. Asked what this means, Ms Alexander added: "I think your viewers would be surprised if we didn't recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out. "We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that." Ms Alexander said she wouldn't comment directly on taxes and the budget at this point, adding: "So, the chancellor will set her budget. I'm not going to sit in a TV studio today and speculate on what the contents of that budget might be. "When it comes to taxation, fairness is going to be our guiding principle." Read more: Afterwards, shadow home secretary Chris Philp told Phillips: "That sounds to me like a barely disguised reference to tax rises coming in the autumn." He then went on to repeat the Conservative attack lines that Labour are "crashing the economy". Mr Philp then attacked the prime minister as "weak" for being unable to get his welfare reforms through the Commons. Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms. Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes. With the savings from these proposed changes - around £5bn - already worked into the government's sums, they will now need to find the money somewhere else. The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.
Times
04-07-2025
- Business
- Times
Rachel Reeves: Taxes will rise to cover scrapped welfare reform
Rachel Reeves has warned cabinet ministers that tax rises in the autumn budget are likely to prove even more challenging than the £40 billion package she imposed in November. The chancellor told cabinet on Tuesday that the decision to abandon welfare reforms meant taxes would have to rise to cover the cost. She said the rises in her first budget, which included a £24 billion increase in employers' national insurance contributions, were 'painful' but were the 'low-hanging fruit'. Tax rises in the autumn are likely to be smaller than last year's but she is expected to have to raise tens of billions of pounds more. Reeves told ministers that would be a 'big challenge' given that she has limited options for doing it. Economists have warned that the scale of the hole in the public finances means that she may have to break Labour's manifesto pledge not to increase income tax, national insurance or VAT. There are also suggestions that she could raid pension savings, which was rejected before the last budget.
