close
Share with your friends

No surprises in the Budget for personal taxes

The Chancellor’s Budget had no surprises for personal taxes with no announcements on changes to either capital gains tax or inheritance tax.

No announcements on changes to either capital gains tax or inheritance tax.

The Chancellor’s Budget had no surprises for personal taxes with no announcements on changes to either capital gains tax or inheritance tax.

Jo Bateson, Partner, Family Office & Private Client, commented: “The Chancellor has today set out his plans for income tax, confirming that there will be no increases to the rate of tax. He has instead announced a freezing of the tax bands until 2026 as previewed over the weekend. Whilst this may not seem like a significant change, the Red Book indicates that this measure will raise over £19bn over the next 5 years which is not an insignificant amount.

“The Office for Budget Responsibility (OBR) has calculated that this measure will impact over 2.3m taxpayers by 2026 bringing 1.3m people into the tax net. According to the OBR, 58% will be female and 67% male, and this will bring a further one million people into higher rate taxes. For a higher rate taxpayer, which is those with income over £50,270, this measure could cost them up to £734 per year.

“Today has not seen any announcements on the taxation of capital such as capital gains tax, inheritance tax or indeed a wealth tax. Having said this, this is a Budget of two halves with further tax announcements expected on 23 March when the Treasury publishes its Command Paper. This is therefore be a case of “wait and see” which measures the second half brings.”

Income Tax Personal Allowance and the basic rate limit from 6 April 2022 to 5 April 2026 - GOV.UK (www.gov.uk)

                                                                            -ENDS-

 

Follow us on twitter: @kpmguk #Budget2021

For further information please contact:

KPMG Media Relations

Tel:  +44 (0) 207 694 8773

Helen Jackson

Mobile: 07901 115 649

Helen.jackson@kpmg.co.uk

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.