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What tax rises can we expect from Rishi Sunak in the 2021 Budget?

Personal Tax Allowance easiest target of all as Rishi Sunak looks to cover Covid costs

Mr Stevenson went on to provide a checklist of what he will be watching out for. Among the topics on the list was Personal Tax Allowance rules - something which he said was high in terms of the probability of it happening. This is probably the easiest target of all because freezing the levels at which individuals start to pay tax and move into higher tax bands is a ‘stealth tax’. Like inflation, it is a way of dipping into people’s pockets without many of them noticing. The £6billion potential increase to Government revenues is not to be sniffed at either.

Taxes will dominate next week s Budget, but which ones will Rishi Sunak raise?

To zoom in on the challenges Sunak is facing, City A.M. caught up with, Tom Stevenson, investment director for personal investing at investment manager Fidelity International. “In recent weeks it has become clearer that the government is determined not to re-open the economy prematurely. If this is really to be the final lockdown, then we are likely to proceed with great caution,” Stevenson said. The Chancellor’s primary objective will continue for to be supporting the economy rather than repairing the country’s finances, he noted, saying that “at the margin this makes unwelcome tax raids a little less likely.”

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