View Image

The UK Government has announced a host of changes to taxes that will impact people across the UK. The Budget shows tax increases which will raise £0.7 billion next year and £26 billion in 2029-30, which mean the OBR say "more than off setting the increase in spending by the final years of the forecast".

Personal tax rises will generate £15bn in 2029-30, the OBR say.

The OBR document lays out the changes and how much money they will generate for Rachel Reeves. It divides them into personal tax changes, and others.

The personal tax changes will raise £14.9bn for the UK Government in 2029-30. The changes include:

• Freezing personal tax and employer National Insurance contributions (NICs) thresholds for three years from 2028-29, which raises £8bn
• Charging NICs on salary-sacrificed pensions contributions, raising £4.7bn
• Increasing the tax rates on dividends, property and savings income by 2 percentage points, raising £2.1bn

Other tax changes raise £11.2 billion in 2029-30. These include:

• A reduction to the writing down allowance main rate in corporation tax, which raises £1.5 billion
• A new mileage-based charge on battery electric and plug-in hybrid cars from April 2028, raising £1.4 billion
• Reforms to the taxation of gambling, which raises £1.1 billion

The OBR economic and fiscal outlook show personal tax rises with a combined yield of £15 billion in 2029-30.For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here

These include: freezing tax thresholds from 2028-29 onwards, which raises £8bn in 2029-30 and contributes to around 780,000 more basic-rate, 920,000 more higher rate, and 4,000 more additional-rate taxpayers by 2029-30 than in the March forecast; charging National Insurance on salary-sacrificed pension contributions,which raises £4.7 billion; and increasing tax rates on dividends, property and savings income by 2 percentage points, raising £2.1 billion.

Other tax changes raise £11 billion by 2029-30.

These include a new mileage-based charge on electric and plug-in hybrid cars from April 2028 at around half the fuel duty rate paid by drivers of petrol cars (raising £1.4 billion); a reduction to writing down allowances in corporation tax (£1.5 billion); reforms to gambling taxation (£1.1billion); changes to capital gains tax reliefs on employee ownership trusts (£0.9billion); and tax administration, compliance and debt collection measures (£2.3billion).

These tax rises are partially offset by a further freeze to fuel duty rates until September 2026, which costs £2.4 billion next year and £0.9 billion in the medium term.