According to a report in The Telegraph, the “stealth tax’ will be far greater than those previously attempted, with personal allowances last frozen over a decade ago.
The move will result in every higher-rate tax payer earning more than £43,875 being forced to pay an additional £489 in tax with 75,000 more people being asked to pay the tax for the first time, according to The Telegraph. The level at which inheritance tax becomes payable may also be frozen.
The move follows the new 50p higher rate of income tax which is set to kick-in next month for those earning more than £150,000. Darling may also be looking to raise a further £1.2bn by removing tax breaks for those earning more than £100,000, according to The Telegraph.