There is a scramble to protect assets ahead of the UK autumn budget for fear of a tax hike. The case for tax rises is that the recession created by COVID19 restrictions is set to open up a big ‘hole’ in the government’s finances.
The government would presumably look to target higher UK earners with any income tax rises. However, this wouldn't contribute a whole lot to the overall tax-take. VAT is one of the largest sources of tax revenue for the government, bringing in £132bn in 2018-19. A relatively small rise could make a large impact.
Also considered, is an online sales tax which would seek to keep the UK high streets alive by taxing digital sales more onerously.
However, the former Chancellor believes there will be no tax hike for a few years, as any tax hikes now risk being totally self-defeating by strangling the incomplete rebound in the economy.
Read more https://www.accountancyage.com/2020/09/21/former-uk-chancellor-dont-expect-tax-rises-until-2024/
