The final design of the tax, including the rate of the tax, will be announced at the Autumn Budget on 27 October.
Charlotte Sallabank, tax partner at Katten Muchin Rosenman LLP, commented: “The long awaited rate for the new Residential Property Developer Tax will be announced in the Budget.
“I doubt if there will be a hike in CGT rates to align with IT rates as per the reports of the OTS – CGT does not bring in a great deal of money and the increase would be a big vote loser. There may be some changes to inheritance tax, not necessarily to the headline rates, to bring in more revenue, such as by cutting some reliefs.
“On the other hand an increase in rates of environmental taxes and a broadening in their scope/ introduction of new environmental taxes may well be included as there is pressure on the government to tackle environmental issues.
“As the increase in national insurance contributions has already been announced and corporation tax is set to rise to 25% in 2023 it is unlikely that any other significant increases in direct tax rates will be announced.”
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