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Overt tax increases are unlikely, says PwC

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14th Nov 2005
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PricewaterhouseCoopers has issued predictions on the contents of Chancellor Gordon Brown's Pre-Budget Report and says that announcements of "overt tax increases" are unlikely.

The Big 4 accounting firm forecasts that the report will make reference to environmental taxes, and could feature car tax, wind farms and other forms of renewable energy sources. The Chancellor may also indicate how petrol and diesel duties will change in the wake of oil price rises.

The firm also predicts that there will be further tweaking of the pensions tax regime in the run up to 'A Day' next April, when the new regime kicks in, and there will be further consultation on taxation for couples, in light of the Civil Partnerships Act.

Other issues that may be covered by the report include the questions of whether personal holiday homes held via companies should be taxed as a benefit in kind. "A PBR announcement on this could help clarify matters," says PwC.

The chancellor is unlikely to make any announcement on council tax reform before the Lyons review into local government finance reports in 2006, says the firm, but he is likely to talk about improving the tax credits system, and phasing out payment via employers.

John Whiting, tax partner at PricewaterhouseCoopers, concluded: "We should see announcements of next year's personal allowances and national insurance contribution thresholds. Inheritance tax, capital gains tax and stamp duty are unlikely to be on the Chancellor's agenda, but capital gains tax simplification would be welcomed. To bring some festive cheer, we could see help on pensioners' winter fuel allowances, particularly given the recent hike in fuel prices."

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By barryhallam
15th Nov 2005 09:49

When is it?

Have we got a date yet for the PBR?

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