The government of the United Kingdom has proposed a tax cut plan that would reach 44,795 million pounds (50,970 million euros) for the 2026–2027 fiscal year, which includes cuts in both Income tax as social contributionAs indicated by the country’s Finance Minister Kwasi Quarteng on Friday.
On the one hand, the government has reversed the increase of 1.25 percentage points in social contribution social Security The country that approved last year. This would effectively mean a tax cut of 15,250 million pounds (17,266 million euros) for workers.
The second great measure which will reduce the income of the British public exchequer is repeal of corporate tax hike of the country, which was to increase to 25% by April 2023. Instead, it will remain at the current 19%. This would mean a reduction in earnings over a five-year horizon of €18,710 million (Euro 21,182 million).
London also plans to remove the 1.25 percent increase in tax paid by taxpayers Dividend They get it from shares. At first, the British Treasury will collect 1,440 million (1,630 million euros) less, but estimates that the effect will reduce to 885 million (1,002 million euros) over a five-year horizon.
Another major measure affecting workers is Amendment in brackets for income tax (your personal income tax). Currently, there are four brackets in the United Kingdom: one of 0%, for incomes up to £12,570 (14,231 euros), the other 20% for incomes between £12,571 and 50,270 pounds (56,914 euros); One in 40% for income in excess of the previous amount and up to £150,000 (169,825 euros); and one in 45% for the richest taxpayers who earn more than £150,000 a year.
London has a new offer remove that last 45% installment, so that high-income individuals would stop paying 2,065 million (2,338 million euros) in taxes over a five-year horizon. On the other hand, the second installment will be reduced by one percentage point to 19 percent.
The government expects the initial impact of the measure to mean savings of 5,270 million pounds (5,967 million euros) for workers, although the final impact of the measure in 2026-2027 will be positive at 45 million in 2026–2027 due to an uptick in employment. pound (€51 million,
Another important measure would be the remodeling of discounted purchases. VAT for tourists, Modernizing the Northern Ireland Plan and Digitizing it in Great Britain. This would reduce tax revenue by 2,060 million (2,332 million euros).
The executive also plans to revise the tax similarly. property transfer tax Spanish that affects only buying a house, Thus, they have doubled the discount price to 250,000 pounds (283,000 euros). In the case of the purchase of a first home, the value of this tax-exempt property increases to £425,000 (481,172 euros).