U.K. tax gap remains at 5.3% as Chancellor prepares for Autumn Budget

The Chancellor's recent Budget announcement includes several measures specifically designed to impact young people under 25, addressing their unique financial challenges and needs. These measures are expected to provide support in various areas, including employment and financial stability.

Chancellor Rachel Reeves has confirmed the introduction of a mansion tax on properties valued over £2 million as part of the Autumn Budget, aimed at addressing the ongoing cost of living crisis in the UK. This yearly charge is expected to significantly impact high-value homeowners, raising questions about affordability and financial planning for this demographic.

The Chancellor has announced a freeze on the income tax thresholds for an additional three years, meaning individuals will start paying tax and enter higher tax brackets at the same income levels as before. This decision is expected to impact future disposable incomes significantly.

The Chancellor is set to announce a comprehensive budget today, which is expected to include a range of tax increases aimed at stabilizing public finances while fostering economic growth. This comes amid rising concerns about the UK's financial outlook and the need for fiscal adjustments.

Chancellor Rachel Reeves plans to reduce the annual cash ISA limit from £20,000 to £12,000, a move that has raised concerns among finance leaders about its potential impact on mortgage rates and consumer saving behavior. Building societies warn that such a significant cut could deter individuals from saving, undermining the purpose of these tax-efficient accounts.