#tax-relief

#tax-relief

At the moment the chancellor gives away more than 50bn in tax relief for pension saving, most of which goes to wealthier boomers and better-paid gen Xers who do not need the money and would save anyway if state support was more limited. A remodelling of pension subsidies cutting the 40p higher rate to a flat rate of 25p for all savers could claw back 10bn to 20bn in extra income tax and national insurance payments, depending on how the new regime is constructed.

The reduction in inheritance tax relief for agricultural land and assets could have a devastating impact on thousands of family farms, said Aloysia Daros, S&W Head of Landed Estates and Rural Businesses.

Residents of high-tax states suffered the most with the previous cap on state and local taxes (SALT), because their taxes far exceeded the cap, they were not able to deduct the full amount like residents in low-tax states.

The provision establishes tax deductions and tax-free reimbursements for eligible moving expenses for IC employees and certain political appointees, a measure aimed at preventing them from being unfairly taxed on money they spend to cover mandatory moving costs.

To lower the cost of defence and transport spending, the UK Government is considering reducing tax reliefs, particularly on pensions and inheritance tax, as suggested by tax experts.

While many homeowners are feeling the pinch, seniors living on fixed incomes are often hit hardest by this growing burden.