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Budget Changes Hit Pockets: Tax & Benefit Shocks Ahead
2 Dec
Summary
- Tax thresholds are being frozen, increasing tax burdens for many.
- An independent review highlights debt issues for unpaid carers.
- Compensation for NHS contaminated blood victims will be tax-free.
The Chancellor's recent Budget introduces numerous financial adjustments impacting wages, energy costs, and savings, with several changes slated for future implementation. More immediate tax alterations include the freezing of tax thresholds, which is expected to lead to higher taxes for a significant portion of the population, alongside modifications to Cash ISA limits.
An independent review has shed light on the "bewildering system" of benefits, revealing that tens of thousands of unpaid carers have incurred debt due to the overpayment of Carer's Allowance. The report's author urges swift government action on her recommendations to address this critical issue for those caring for others over 35 hours a week.
In a notable development, the families of individuals infected with HIV and Hepatitis C through NHS contaminated blood in the 1970s and 80s will be exempt from paying tax on their compensation. This crucial commitment aims to alleviate potential inheritance tax burdens, which could have amounted to tens or even hundreds of thousands of pounds.
