Writing in Landlord Today, Sarah Coles, from Hargreaves Lansdown is of the opinion that there could be more tax changes in the Autumn budget, saying that the Spring Statement introduced no new tax changes, but economic forecasts were revised. Growth for this year was downgraded from 2% to 1%, while future years saw upgrades. With limited fiscal headroom, tax rises could be on the table in the autumn Budget if growth disappoints.

Labour’s election pledges limit options, as they vowed not to raise income tax, National Insurance, or VAT. Instead, they have targeted other areas, increasing inheritance tax, capital gains tax, and the stamp duty surcharge. However, these changes generate only modest revenue.

Further tax hikes risk reducing overall revenue, especially with capital gains tax, as higher rates often discourage sales. Freezing income tax thresholds further is possible but wouldn’t provide an immediate revenue boost.

The government may look at complex VAT reforms or even consider a new tax on wealth to avoid breaking promises. A U-turn on election pledges is also a possibility.

Given the uncertainty, individuals should make the most of tax-efficient opportunities, such as ISAs, before the tax year ends. While no immediate action is necessary, strategic planning can help mitigate future tax risks.

The whole article can be read here.