Predictions for personal tax in the Budget
These areas have not be heavily trailed in the Pre-Budget Statement or after, but may be included in the Budget.
1. Stamp Duty increase specifically targeted at high value domestic property (not commercial). Likely increase 0.5% to 3% on houses valued between £250,000 and £500,000 and 1% increase to 4.5% on houses valued over £500,000. Stamp Duty on domestic property to be decoupled from commercial property transactions.
2. 2% above inflation increase in the duty on petrol and diesel. No increase on cleaner City diesel or LPG (Liquid Petroleum Gas)
3. Ring fenced tax for NHS through increase in duty on tobacco, at least 10p on a packet of 20 cigarettes.
4. Remove the tax free transfer of assets between spouses for inheritance tax purposes. To compensate for the removal of this allowance, the IHT threshold will be increased to £300,000. This move is needed in response to pressure from impending court action in Europe over rights for unmarried and gay couples.
5. Reduce betting duty in response to increase in tax free offshore betting.
6. No increases in duty on alcohol to help combat booze cruises.
7. Passenger Duty to be changed from a flat rate to a percentage of the ticket, with a minimum charge of £5.
8. Increase the tax taper for lifetime gifts within inheritance tax from 7 years to ten years. This brings it into line with the taper relief on Capital Gains Tax.
9. Announcement of the abolition of employee National Insurance Contributions in the next Parliament. This will be replaced by a ring fenced NHS tax, on a revenue neutral basis.
10. An extension of the tax deduction for workplace nurseries, to enable employers to subsidise nurseries run by third parties.