Rachel Reeves first Budget as Chancellor brings wide-ranging tax system changes worth £40bn (a record-breaking amount for any single budget announcement)
The basic-rate taxpayers will see capital gains tax jump from 10% to 18% next spring; while higher-rate payers face an increase from 20% to 24% on investments like shares bonds and crypto-currency assets. Property sales however remain unchanged
Employers face a double-hit in changes: the National Insurance threshold drops from £9‚100 to £5000‚ and contribution rates go up to 15% (which means companies will need to pay more for each worker they employ)
The property market sees significant adjustments:
* Second-home stamp duty rising by 2% overnight
* First-time buyer tax-free threshold dropping to £300k from £425k
* Regular buyers threshold decreasing to £125k from £250k
Some good news exists though - motorists dont need to worry about fuel costs going up as theres a two-year freeze on duty plus keeping the 5p reduction. Also pub-goers can enjoy their drinks for a penny less per pint
Looking towards 2027 pensions will become part of inheritance tax calculations; this affects people whoʼve been using their pension savings to avoid the death tax. Its a major shift from current rules where pensions stay outside inheritance tax scope