Key Tax Increases in the New Budget

The recent budget announcement included significant tax increases totaling £40 billion, marking the largest tax hike since the early 1990s. Employers’ national insurance contributions are set to rise by 1.2 percentage points, which will impose additional costs on many businesses, especially small ones. Similarly, capital gains tax rates will increase to 24% for higher earners and 18% for lower earners, impacting investment strategies across the financial landscape. The shift in tax policies also includes the phasing out of the non-domicile tax regime, representing a broader effort to close loopholes that benefit wealthy individuals.