Alongside the various representations from the professional bodies, Chancellor Rishi Sunak has also received suggestions from UK taxpayers and businesses in the run-up to the Autumn 2021 budget, including higher taxes for millionaires and retaining reduced VAT rates for the hospitality industry.
- In an open letter, a group of 30 UK millionaires have called on the Chancellor to increase taxes on the wealthy, saying “the cost of recovery cannot fall on the young or on those with lower incomes”. They called for policies that tax wealth as a priority including:
- The introduction of a wealth tax on the nation’s richest people.
- An equalisation of Capital Gains Tax with Income tax.
- A review of property tax.
- More than 200 CEOs from the UK’s biggest hospitality groups have called for the VAT rate to stay at 12.5% for businesses in the hospitality sector. Under current Treasury plans, the VAT standard rate of 20% is due to return for those businesses from 1 April 2022. The rate was dropped to 5% during the early stages of the COVID-19 pandemic in July 2020. According to the CEO’s the retention of the 12.5% rate would:
- Enable the industry to generate new jobs.
- Support higher wages for staff.
- Help boost green initiatives.
- The UK's largest Independent Financial Advisor (IFA), Hargreaves Lansdown has again rolled out a survey by Opinium that shows Inheritance Tax is the nation's 'most hated' tax.
- 24% of the 2,000 people asked, said Inheritance Tax was the most hated.
- Only four per cent of people in Britain pay Inheritance Tax.
The Budget will be held at 12.30pm on Wednesday 27 October 2021. The government will also announce the results of it's latest spending review, setting out how public services will be funded over the next three years.
Useful guides on this topic
Finance Act 2021: tax update & rolling planner 2021/22
This tracker follows tax new measures proposed from 1 April 2021/6 April 2022 including backdated measures and those introduced by Finance Act 2021 and National Insurance Contributions Bill 2021.
Capital Gains Tax, rates and allowances
What are the Capital Gains Tax rates, bands, reliefs and exemptions?
Tax Data Card 2021-22
A summary of key tax rates and allowances for 2021-22 and 2020-21.
IHT (Inheritance Tax): allowances & rates
This is a freeview 'At a glance' guide to Inheritance Tax (IHT) rates and allowances.
IHT: Estate planning checklist
This checklist covers some of the essential planning points that taxpayers should know when planning for their estate and Inheritance Tax (IHT).
Open letter: Proud to pay our taxes, Partners in Progress