Treasury officials are proposing a number of dramatic tax hikes in an attempt to reverse the UK’s piling public debt and ward off a recession. The Chancellor is looking to target capital gains tax, corporation tax and pension tax relief in a bid to raise at least £20billion in extra funds after the coronavirus crisis haemorrhaged the public purse.
Some of the new measures could be introduced as early as the autumn budget, which Mr Sunak is expected to announce in late November.
Though the plans have yet to be finalised, the £20billion tax raid is expected to largely affect the wealthy, businesses, pensions and foreign aid.
If the measures are approved second-home owners could be hit especially hard, as the Government looks to bring capital gains tax in line with income tax.
A poll, which ran from 9am to 7pm on August 30, asked, ‘Would you accept £20bn tax drive to help pay for the pandemic?’
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The poll received 4,694 votes with 58 percent (2,657) of people objecting to Mr Sunak’s bombshell tax hikes.
One person said: “The people are already suffering as a result of this pandemic and the extended lockdown.
“The last thing the hard-working taxpayer needs is to see taxes increase and the money in their pocket reduce.”
Another reader added: “No need for tax rises, just cut public spending.
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“Scrap HS2, no benefits to foreigners, scrap vanity projects, no more payments to the EU, scrap foreign aid, these are just for starters.”
Someone else said: “Absolutely NOT! Use the money we saved on EUSSR fees, or even better, use that for NHS as promised and the trade benefit from free trade agreements will pay for corona debt twice over!!!
“Conservatives are supposed to be low tax party!”
Another person argued increasing taxes would hinder the recovery rather than help it.
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They said: “No, higher taxes would simply hinder the recovery as people would have less money to spend in the real economy.
“How about cancelling all foreign aid? That’s about £16B saved right there.
“Cancel HS2 as well and we could have a tax cut!”
Around 40 percent (1,922) said they were willing to help pay for the pandemic while just two percent (115) said they didn’t know.
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One person urged the Government to make sure large corporations are the first to be taxed.
They said: “As long as the first to be taxed are corporations who pay little or no tax here.
“It can’t be ordinary people who yet again bear the brunt of these measures.
“No more duty on fuel though, we already pay a fortune.”
Chancellor Rishi Sunak
Mr Sunak’s move would see capital gains tax almost double to 40 or even 45 percent, instead of the current 28 percent
The changes to capital gains tax will also affect owners of buy-to-let properties when they sell their houses.
The hike in capital gains is expected to raise up to £14billion a year.
The Treasury is also considering hiking corporation tax from 19 to 24 percent, which would raise £12billion next year alone, the Sunday Times reports.
By the 2023-24 financial year, the move would raise a whopping £17billion.