03 Aug 2023
It’s difficult to believe that only two years ago the Bank of England expressed concern about the possibility of negative interest rates in the wake of the global downturn. As the pandemic took hold in March 2020, the base rate hit 0.10%. Those days are long gone. Spiking inflation has driven at least 13 hikes in interest rates since December 2021 to levels not seen since the 2008 crash. Those with new mortgages or looking for new deals face huge increases in their monthly bills.
Inflation meanwhile has ebbed slowly downwards to under 8% in June from a peak of 11.1% last September, but far from the government’s target of 2%.
Additionally, despite government ambitions to reduce income tax rates, the overall tax burden is likely to remain at an historically high level for the foreseeable future, with higher earners continuing to shoulder most of the burden. Higher and additional rate taxpayers currently pay over two-thirds of all income tax.
See the latest update to our Wealth Professional Key Guides for these and other developments to affect you and your business.
Taxation of Property Key Guide: https://acrobat.adobe.com/.../urn:aaid:sc:EU:74b3dc5a...
Pension Tax Planning for High Earners Key Guide: https://acrobat.adobe.com/.../urn:aaid:sc:EU:fb1f4ef9...
