When is the Budget and what might be in it?

The government has already ruled out raising VAT (value added tax), income tax and National Insurance.

But it could choose to increase other taxes.

Capital gains tax (CGT)

CGT, external is charged on the profit made from the sale of assets that have increased in value, such as second homes or investments.

Its paid by individuals and some business owners, and the rates vary depending on how much income tax you pay.

Inheritance tax (IHT),

IHT, external, which is currently 40%, is usually paid on the value of a deceased person’s assets above a threshold of £325,000.

Fuel duty

Fuel duty has not risen in more than a decade, external. It was frozen between 2012 and 2022, and cut by 5p in March 2022 when pump prices surged following Russia’s invasion of Ukraine.

However, some motoring groups argue the cut was never passed on to motorists and the RAC says it could be reversed.

Council tax

The single-person council tax discount, external reduces bills by 25%. Some reports have suggested the government is considering scrapping it, external.

Pension tax relief

People who pay into private pension pots get tax relief on their contributions, external, up to a certain amount. This boosts the amount saved.

At the moment, savers receive tax relief at the same rate as their income tax – so basic rate taxpayers get tax relief at 20% and higher rate taxpayers at 40% or 45%.

The government could introduce a single flat rate of relief which would make the system less generous for higher earners.