Major upcoming tax reforms include a new mansion tax on £2m+ properties, higher tax rates on property, savings and dividend income, a £2k cap on NIC relief for pension salary sacrifice, tighter rules on image rights, reduced CGT relief for EOTs, and an IHT cap for historic non-dom trusts.
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Pre-Budget Leaks: Key Proposals Ahead of the 2025 UK Budget
Ahead of Chancellor Rachel Reeves’ 2025 UK Budget, several leaked proposals are gaining traction:
Mansion Tax: A new levy on properties over £2 million, starting at £4,000 annually.
Property Revaluation: A revaluation of homes in council tax bands F, G, and H, the first since 1991.
National Insurance on Landlords: Proposals to require more landlords to pay NI contributions.
Income Tax: No rate increases, but a potential freeze on tax thresholds beyond 2028.
Pensions: A £2,000 cap on salary-sacrifice pension contributions, triggering NI liabilities above this threshold.
EV Tax: A 3p per mile tax on electric vehicles to offset lost fuel duty.
ISA: Reduction of the tax-free cash ISA limit from £20,000 to £12,000.