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UK FISCAL: Updates on latest Budget measures (2/2)

UK FISCAL
  • However, there is still uncertainty around how much CGT will be increased for share sales. The Guardian report last week noted that the Treasury was modelling an increase to rates between 33-39% for higher rate taxpayers (up from 20% currently). However, Prime Minister Starmer described the 39% rate as "getting to the area which is wide off the mark."
  • The Times also reiterates previous reports that CGT on carried interest (which is currently 28%) is unlikely to be changed as it would likely lose money as firms relocate out of the UK.
  • It also appears over recent days from various media outlets that employer national insurance contributions are increasingly likely be introduced for pension contributions. The Labour government is stating that this keeps its manifesto pledge not to raise national insurance. Although this would probably have an adverse impact on pensions saving if these costs get passed on through less employee matching over the minimum amounts.
  • In terms of gilt remit estimates, we have only seen a handful of estimates for a revision to the remit so far but these range from GBP14bln to almost GBP40bln increases so far.
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  • However, there is still uncertainty around how much CGT will be increased for share sales. The Guardian report last week noted that the Treasury was modelling an increase to rates between 33-39% for higher rate taxpayers (up from 20% currently). However, Prime Minister Starmer described the 39% rate as "getting to the area which is wide off the mark."
  • The Times also reiterates previous reports that CGT on carried interest (which is currently 28%) is unlikely to be changed as it would likely lose money as firms relocate out of the UK.
  • It also appears over recent days from various media outlets that employer national insurance contributions are increasingly likely be introduced for pension contributions. The Labour government is stating that this keeps its manifesto pledge not to raise national insurance. Although this would probably have an adverse impact on pensions saving if these costs get passed on through less employee matching over the minimum amounts.
  • In terms of gilt remit estimates, we have only seen a handful of estimates for a revision to the remit so far but these range from GBP14bln to almost GBP40bln increases so far.