John Healey Plans Family Business Tax Hikes for October Budget
Chancellor John Healey is preparing an October 28 Budget featuring taxes on family business transfers and gambling machines to address a 35 billion pound spending gap.
Chancellor of the Exchequer John Healey is finalizing the October 28 Budget amid a projected 35 billion pound spending shortfall identified by the Institute for Fiscal Studies. While Healey has sought to avoid a broad budget disaster by limiting new taxes to protect economic growth, he is planning targeted increases to raise revenue.
Healey intends to levy income tax on business owners who transfer companies to their children by closing a loophole involving redeemable shares. This measure aims to shift the tax rate from 24 percent capital gains to 45 percent income tax. Additionally, the Chancellor expects to introduce a new tax on gambling machines to generate 500 million pounds and may target high-street banks with windfall taxes.
These moves follow previous inheritance tax crackdowns by former Chancellor Rachel Reeves. Despite pressure from Deputy Prime Minister Louise Haigh and various think tanks to increase wealth and capital gains taxes, Healey has reportedly ruled out aligning general capital gains rates with income tax rates to maintain investor appeal. Prime Minister Andy Burnham's focus on a potential snap election is believed to be influencing the government's effort to avoid a major political row over the Budget.
