UK Budget Speculation Raises Tax Uncertainty for Businesses, Homeowners

Speculation around Britain's upcoming November 26 budget is causing significant uncertainty among consumers, businesses, and the property market. Treasury chief Rachel Reeves is reportedly considering new taxes, including property taxes on home sellers, potential changes to income tax, pension relief, and levies on banks and gambling, aiming to raise at least £20 billion to address weak public finances. This has dampened confidence, with some employers hesitant to raise wages and potential homebuyers and sellers delaying transactions due to fears of increased costs. The property market is particularly affected by rumors of scrapping Stamp Duty for buyers and imposing new taxes on sellers of homes over £500,000, as well as removing Capital Gains Tax exemptions on main residences above certain values. Estate planning queries have surged as individuals and wealth managers react to potential changes in inheritance tax rules, which are compounded by the freeze of the nil-rate band since 2009 and the announced inclusion of pensions in inheritance tax calculations from 2027. Financial advisors caution against making hasty decisions amid this uncertainty, emphasizing the importance of thorough planning and tailored advice.