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Property stealth taxes to be major part of next week’s Budget

The Financial Times has an exclusive saying allowances on property taxes such as Capital Gains and Inheritance will be frozen - bagging billions for the government.

The paper claims this is to be a central part of the government strategy to fill the hole in the public finances.

In detail this will mean extending a freeze in the inheritance tax “nil rate band” from 2025-26 to 2027-28.


A freeze in the inheritance tax threshold to 2025-26 was announced last year by then chancellor Rishi Sunak.Double digit inflation has already meant that this freeze has won more than expected for HMRC - extending the freeze further will raise even more.

On death, inheritance tax is paid at 40 per cent on the value of the estate over the nil rate band, which has been set at £325,000 since 2009, and £650,000 for a couple.

In 2017, the government introduced a new “transferable main residence nil rate band of £175,000” which applies when a home is left to direct descendants.

The FT says a similar approach is to be taken for Capital Gains Tax - effectively increasing the tax take by stealth.

“[Chancellor Jeremy] Hunt is likely to extend the current freeze on the CGT annual exempt amount of £12,300 from 2025-25 until 2027-8” says the FT, which also warns that Hunt is increasing capital gains tax paid on shares and second homes.

The government's Autumn Statement will be on Thursday week.


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