The Chancellor of the Exchequer is expected to raise £2.04 billion from freezing or maintaining IHT thresholds, the Lifetime Allowance and Capital Gains Tax by 2025/26
- The Chancellor forecasts to raise an extra £985m from freezing IHT bands by 2025/26
- £990m is expected to be raised from freezing the Pension Lifetime Allowance until 2025/26
- Maintaining the annual exemption on CGT will bring in an estimated £65 million by 2025/26.
- Total of £2.04 billion expected over the next 5 years.
Andrew Tully, technical director at Canada Life comments:
“By freezing or maintaining thresholds, the Treasury can expect to bring in over £2 billion in stealth taxes over the next five years. With property prices and investment markets rising, it’s clear that more and more people are going to be caught out by these taxes. These eyewatering sums will inevitably fund some of the significant spending pledges announced today.”
Full costings available here Budget_2021_policy_costings_.pdf (publishing.service.gov.uk)