12 tax rises next year that you won’t hear about in the Budget

Millions of households will face higher taxes next year due to frozen tax thresholds and allowances, even if these are not explicitly announced in the Budget. Personal finance experts explain that these "stealth taxes" quietly increase the tax burden as wages and prices rise. Key thresholds that have remained unchanged for years include the £100,000 personal allowance limit, which has not been adjusted since 2010 and effectively results in a 60% tax rate for those earning between £100,000 and £125,140. The high-income child benefit charge threshold has also failed to keep pace with inflation, as has the £100,000 income limit for tax-free childcare and the £100,000 earning cap for 30 hours of free childcare. Furthermore, income tax bands, including the personal allowance (£12,570) and the higher-rate threshold (£50,270), have been frozen since 2021, meaning more people are pushed into higher tax brackets due to wage growth. Inheritance tax bands, such as the £325,000 nil-rate band frozen since 2009, and the £175,000 residence band frozen since 2021, will also capture more estates as asset values increase. The annual gifting allowance of £3,000, unchanged since 1981, has also lost significant real value, contributing to more inheritance tax being paid. Other frozen allowances that will result in higher tax contributions include the dividend allowance, which has been repeatedly cut and is now £500, and the capital gains tax-free allowance, which was slashed to £3,000 this year. The stamp duty basic threshold remains at £125,000, unchanged since 2006, meaning buyers pay more tax even... download the app to read more