Rachel Reeves latest budget plan shows big tax system changes that nobody saw coming. The fresh tax rules (which will bring £40bn extra money) target pension savings and property owners; its a big shift in how UK manages its money
Here are the people who will get better deals:
- Low-paid workers get £12.21 per-hour from next spring
- Care-workers can earn more while keeping benefits
- Old-age pensioners see 4% boost in payments
- Beer-drinkers save money on draft pints
The hard-hitting changes affect many groups — pension inheritance gets taxed from 2027‚ and business costs go up with employer NI jumping to 15% (thats a 1.2% rise). Farm-owners face new rules too: those with over £1m in assets must pay 20% death-tax instead of zero
Investment-related taxes are going up big-time — share profits now face 18% basic-rate and 24% higher-rate charges. Property owners dont escape either: second-home stamp duty rises by 2% starting right now. The changes make buy-to-let less worth it
Workers face frozen tax limits until 2028; which means more people will pay higher rates as their wages go up. Social housing tenants see reduced buying discounts‚ and smokers face 10% more tax on rolling tobacco. Non-traditional tax residents (non-doms) lose their special status next April