- Rachel Reeves faces a potential £40 to £50 billion budget shortfall.
- A proposed solution is to apply VAT to financial services, which currently do not charge VAT.
- This exemption benefits the wealthy, as they use financial services more.
- Charging a 20% VAT on these services could generate £8 billion annually.
- The tax would primarily affect the wealthy, not ordinary people.
- The issue is framed as one of social justice.
- The decision involves whether to tax the wealthy or protect financial services in the City.
Source: taxresearch.org.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- HMRC Guidance: Updates on VAT appeals
- VAT Exemption for Medical vs Cosmetic Treatments: Key Tribunal Guidance for Clinics and Practitioners
- HMRC Updates Guidance on Lost VAT Appeals: New Cases Added and Amended
- VAT Recovery Falls Despite Increased Crackdown on Business Tax Avoidance, HMRC Figures Show
- VAT Late Filing Penalties: Software Failure and Employee Error Not Reasonable Excuse, Appeal Dismissed
