A House of Commons Library report shows that thousands of families could lose up to a sixth of their income due to a combination of NI changes in the Budget and earlier cuts to universal credit. The research shows self-employed single parents with two children who earned £10,000 a year would lose 16 per cent of their income in total once all the changes came into effect.
What’s more, wealth taxes are set to soar, costing families more than £80 billion over the next five years, figures from the Office for Budget Responsibility (OBR) show.
According to the findings, in 2015-16 the Treasury earned £11.8 billion from Inheritance Tax (IHT) and Capital Gains Tax (CGT), but in 2021/22 it will make £19 billion from them – a 60 per cent rise.
The OBR expects HM Revenue & Customs to collect £54.9 billion in CGT between 2017/18 and 2021/22, and has also pencilled in £27.7 billion from IHT over the five years.
This comes on top of the extra £1.5 billion the Treasury is set to collect over the next five years following a rise in probate fees.
Mark Littlewood of the Institute of Economic Affairs says taxes on wealth were “wrong” and called for a significant reform of IHT and CGT.
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Whether you are looking to save on income tax, capital gains tax, inheritance tax, or all three, there are various legitimate tax planning opportunities available to you. To find out more, please contact Alan Ford or you usual Beavis Morgan Partner.