Britain’s Sunak plans to cut income tax or cut VAT ahead of next election – The Times


British Chancellor of the Exchequer Rishi Sunak speaks at the United Nations Climate Change Conference (COP26) in Glasgow, Scotland, Great Britain on November 3, 2021. REUTERS / Yves Herman

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December 3 (Reuters) – UK Finance Minister Rishi Sunak to cut income tax by 2 pence a pound or cut value added tax (VAT) rates ahead of the next election, a the Times reported on Friday.

Sunak has asked authorities to develop detailed plans to reduce the tax burden, with a third option to reduce inheritance tax also under consideration, the Times said.

His preference would be an income tax cut over the next three years as part of a “retail” offer before 2024, when the next general election is due, the report added.

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A Treasury spokesperson told Reuters: “We have made it clear that we want to see taxes come down by the end of this Parliament and keep the tax system under review. We are not commenting on speculation about a change. specific tax. “

The minister said earlier in October that he had to raise taxes to help pay for the huge spending response to the COVID-19 crisis, but going forward he wanted to cut taxes. Read more

“My mission to the rest of this parliament is to lower taxes by the end, not increase. That’s what I want to offer,” Sunak said in an online discussion organized by his party. curator on October 27.

The VAT cut would cover the overall rate of 20%, along with more targeted cuts to the scheme, the report said, adding that under a plan being considered, households using green energy could pay tariffs. lower.

The Times also reported that the Treasury is working on plans to raise the threshold for inheritance tax, which is 325,000 pounds ($ 430,000) unless it is property left to children, when it is higher. The figure has been frozen since 2009, with 22,800 estates paying 40% on anything above that, the report adds.

($ 1 = 0.7559 pounds)

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Report by Shivam Patel in Bangalore; Additional reporting by Akriti Sharma, edited by Rosalba O’Brien and Aurora Ellis

Our Standards: Thomson Reuters Trust Principles.


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