New Budget brings major tax system shake-up: What you need to know
First-time Budget from **Rachel Reeves** introduces £40bn worth of tax modifications affecting various groups. Changes target capital gains employers contributions and property transactions while offering some relief for drivers
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
