Articles
The first Labour budget in 14 years has included a U-turn on previous announcements by the former Government to address unfairness in HICBC.
Previously I wrote about my frustration with this charge and its unfairness and in the Budget of March 2024 there were announcements identified to address this unfairness which I also explained in my article.
However, the first Labour budget in 14 years has included a U-turn on those previous announcements by the former Government.
The key to making the system fairer was the announcement by Jeremy Hunt that it would move to be assessed on household income rather than an individual’s income so that those parents with one high earner do not lose out.
This overhaul of the system is not being continued under Labour, as the Chancellor has scrapped the plans to reform it as part of her Budget announced last week. While the plans to scrap the reform were not announced, they were included in the extensive Budget documentation released.
This is a good reminder that the announcements are only valid once they are legislated, as they can be withdrawn at any point before then.
THE AUTHOR
Partner
More & Other Musings
View all related contentFEATURED Guides & Publications14 Jan 2026
Making the most of tax reliefs and allowances while they are still available remains crucial. Our guide offers some advice on the principal opportunities you could consider and forms the basis of a good financial plan to complete the tax year.
Guides & Publications1 Dec 2025
Tax rates and allowances change, especially after a Budget or Spring Statement. Here you can download our printable tax tables which has been updated following the Autumn Budget held on 26 November 2025.
Articles22 Oct 2025
It helps to understand how Tax Treaties work and how your position may be affected in cross-border situations.
Articles20 Oct 2025
The UAE is known for its beneficial tax regime, but business owners need to plan their move carefully.
Articles10 Oct 2025
Again, tax rises are a given, we know there is a black hole running to billions that the Chancellor of the Exchequer needs to recover. I said it last year, and I say it again, the big question is ‘where the money will come from?’