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When is it and what taxes will the Chancellor raise?




How much will it cost me?

Mr Hunt is reportedly considering halving the tax-free £12,300 allowance from £12,300. If that drops to £6,000, a higher-rate taxpayer selling residential property will pay 28% of the difference, which means an additional £1,764 if profits exceed £12,300.

Officials also put on the table an increase in the headline rate given the size of the budget deficit. Mr Sunak had previously considered raising CGT to bring it into line with income tax, a raid that would have raised around £16billion.

Assuming capital gains tax is aligned with income tax – as the government’s tax adviser had previously recommended – higher-rate property investors would pay 40% on the gains, instead of 28%.

This would mean that a buy-to-let landlord who is a higher rate taxpayer who bought a property for £226,000 in August 2017, the average house price at the time, and sold it for £296,000 £ today would pay an extra £8,400 in tax on a £70,000 gain, according to analysis by tax firm Blick Rothenberg.

Extended VAT freeze

The Chancellor is set to keep the threshold at which businesses must register to pay VAT at £85,000 in turnover until 2026, instead of increasing it in line with inflation.

How much will it cost me?

The plans mean thousands more small businesses will pay the tax for the first time as their turnover grows in line with rising prices.

This threshold has already been frozen until 2024, but MM. Hunt and Sunak are considering extending it for another two years. VAT is charged at 20pc.

Increase in housing tax

The Chancellor is also drawing up plans to allow town halls to raise council tax by 5% without holding a local referendum.

Under current rules, councils that are responsible for social welfare are allowed to increase their charges by 2.99pc. This includes a 1 pc allowance for social care expenses.

If these authorities want to further increase the levy, they must hold a referendum. However, the new plans would allow councils to raise their tax by 4.99% without a vote.

How much will it cost me?

It means millions of D-Strip households could end up paying up to £100 extra, leading to annual bills of over £2,000 for the first time. Upper H bracket households could pay up to £200 extra and over £4,000 a year in total.