Rachel Reeves ‘plots tax raid on solicitors and GPs in crackdown on UK’s wealthy’
The professions Reeves looks set to target in £2 billion tax raid
- Rachel Reeves, the Chancellor, is reportedly planning to introduce higher taxes for professionals such as lawyers, GPs, and accountants who operate through limited liability partnerships (LLPs).
- The proposed measure, expected in her upcoming Budget, involves a new charge on partnerships to equalise tax treatment, aiming to raise £2 billion.
- This initiative seeks to help fill a significant £30-£50 billion hole in public finances, as partnerships are currently exempt from employer's National Insurance.
- Ms Reeves also indicated that Brexit and austerity have had a greater negative impact on the UK's public finances than initially projected.
- Experts from the Centre for the Analysis of Taxation and the Institute for Fiscal Studies support the change, noting that partners, often highly paid, currently receive preferential tax treatment.