Home Business NewsBusiness Why hiking taxes is not the answer to solving the money crunch

Why hiking taxes is not the answer to solving the money crunch

by LLB Editor
14th Sep 20 11:21 am

Short sighted tax rises which generate relatively minor tax yields, and which store up a much bigger problem for the future should not be the go-to solution, say leading tax and advisory firm Blick Rothenberg

Robert Pullen a partner at the firm said: “ The Government might be eyeing up longer-term structural changes to the tax system (and pensions relief might be in that category), but doing so now would be a huge gamble.

“ It is likely that any changes announced in the Budget will “pave the way” for a bigger announcement in the Spring.”

He added: “ Inevitably, tax rises are now being mooted and there is much speculation that the forthcoming Budget will bring sweeping changes. Only recently, the chancellor was seen to be carrying a draft speech setting out possible tax rises. This has heightened the anticipation of a change to the tax rules.”

Robert said: “ The immediate focus appears to be on capital taxes, with inheritance tax and capital gains tax under the spotlight. Both these taxes bring in very little revenue, at £5bn and £10bn respectively, and so any change will barely make a dent against the estimated £2tn debt pile.

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