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UK freezes personal tax thresholds until 2026

Income tax, pensions lifetime allowance, IHT and CGT all hit by the move Chancellor of the Exchequer Rishi Sunak has unveiled the UK’s budget for 2021-22. But Sunak was more gentle in his approach to paying off the country’s covid-19 debt – currently at around £407bn ($566bn, €470bn). Some personal tax thresholds will increase according to CPI rates for the 2021-22 financial year and then be frozen until April 2026, while others will remain at their current rates for the next five years. “This budget is not the time to set detailed fiscal rules,” Sunak said while presenting the plans to the house of commons.

Budget 2021: UK freezes personal tax thresholds until 2026

Budget 2021: UK freezes personal tax thresholds until 2026
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Inheritance Tax changes: Chancellor Rishi Sunak walking tax tightrope to balance Budget

Inheritance Tax changes: Chancellor Rishi Sunak walking ‘tax tightrope to balance Budget Katie Sewell Replay Video UP NEXT Chancellor Rishi Sunak will announce his long-awaited Budget on Wednesday, March 3, which will mark one year since the Chancellor first introduced a number of generous Covid relief packages to see the UK through the pandemic. However, this year s Budget is not expected to be as generous as it was in 2020, with Britain now facing a looming fiscal blackhole due to significant lockdown borrowing. There are mounting concerns the Chancellor could take this opportunity to hike taxes in order to help recuperate some of the funds lost to the pandemic - and many are concerned the announcement tomorrow could spell major changes to Inheritance Tax.

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