The Treasury’s raid on middle earners

The decision by successive UK governments to increase their tax take by freezing allowances and increasing rates has hit middle earners hard. More people are now re-evaluating how they invest their money, especially as pensions will fall under inheritance tax from April 2027. The basic rate limit has been frozen since the 2021/22 tax year, but rising salaries have pushed people into higher bands, exposing them to greater Capital Gains Tax (CGT). Tax reforms are not only hitting middle earners hard. Life interest and discretionary trust trustees only receive half of the individual’s exempt amount,...