Will Stevens, Head of Financial Planning at Killik & Co, has commented on today’s emergency budget.
“The removal of the additional rate represents one of the most significant income tax changes in recent times, which will deliver a substantial tax saving to the UK’s highest earners. They will also benefit from the abolition of the additional rate of dividend tax.
“The basic rate of tax will fall from 20p to 19p. The cut will benefit all taxpayers, aiding with the cost-of-living crisis faced by many and should stimulate the economy further.
“The government is clearly aiming to improve the competitiveness of the UK compared to rival economies, encourage entrepreneurship, and increase discretionary spending.
“However, the longer-term effect of this could apply further pressure to already high levels of inflation and there is fear that future generations will be left to pick up the bill for tax cuts made now.”
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Also, be sure to read our update right here on IFA Magazine.