The business community is reportedly concerned about potential new taxes as the Budget approaches on 28 October. JMW partner Craig Harrison notes that tax rumours are causing worry among his clients.
Following previous tax increases aimed at addressing a fiscal gap and creating economic 'headroom', persistently high inflation is now seen as a challenge for Chancellor John Healey. This inflation indirectly increases public spending on inflation-linked payments, potentially leading to a deficit.
With significant spending cuts deemed unlikely, there is nervousness that new taxes will be announced. Among the possibilities discussed are a wealth tax, an exit tax on those changing residency or tax domicile, and aligning capital gains tax more closely with income tax.