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Budget 2021: Five year personal tax ice age

The Chancellor's unveiling of the Budget has provided implications for personal tax. Chris Williams breaks down the tax freezes.
3rd Mar 2021
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2021 Budget - in association with PracticeWeb

The Chancellor’s announcement that personal tax rates and bands would remain unchanged was a classic piece of increasing taxation without entirely flouting the Government’s past promise not to increase income tax.

That is all for the next five years but the story doesn’t end there. The income tax allowance and rates freeze will take effect at a time when most incomes have been suppressed during Covid-19 but the Chancellor is looking to stimulate the economy which should see an increase in both wage and price inflation if the recovery kicks in as expected in September.

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By david kidger
04th Mar 2021 19:49

That increase in CGT receipts of 42% won't be due to an increase in rates it will be a product of inflation.

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