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.
Register for free to continue reading
It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:
Chris Williams is a tax author, AccountingWeb contributor, co-editor with Sawaki Chanda of Bloomsbury's CGT reliefs for SMEs and contributor to Claritax Books. Main interests are Rugby (either code), motorbikes (volunteer bloodbiker) and crosswords. Lifetime ambitions: lead Wales to World Cup glory (hope fading); win IoM Senior TT (hopeless);...