The Institute for Fiscal Studies, a respected think tank, is warning that a further hike in Capital Gains Tax is possible this autumn.
This follows Chancellor Rachel Reeves’ Spring Statement last week and more recent market difficulties triggered by trade tariffs by the United States.
The head of the IFS, Paul Johnson, has told a briefing: “There is a good chance that economic and fiscal forecasts will deteriorate significantly between now and an autumn Budget. If so, she will need to come back for more, which will likely mean raising taxes even further. That risks months of speculation over what those tax rises might be – a raid on pensions, a wealth tax on the richest, another hike to Capital Gains Tax?”
Johnson went on to say: He added: “Ms Reeves has left herself with the same £9.9 billion sliver of headroom against her target to balance the current budget as she had in October, and a very similar amount of headroom against the target that debt should be falling in 2029–30 (£15.1 billion, down from £15.7 billion in October).
“All of that adds to uncertainty around policy. We can surely now expect six or seven months of speculation about what taxes might or might not be increased in the autumn. There is a cost, both economic and political, to that uncertainty. The government will suffer the political cost. We will suffer the economic cost.”
He added: “We might be in for another blockbuster autumn budget. That didn’t go well between last July’s election and October’s budget. I fear a longer rerun this year.”
This article is taken from Landlord Today