Coronavirus: Rishi Sunak is considering a set of tax increases to pay for Covid crisis

The UK Chancellor Rishi Sunak is considering plans for a £30bn tax raid increases to help fix the huge hole in the nation’s finances caused by the coronavirus crisis, some British newspapers said.

Under proposals that are due to form the centrepiece of the budget in November, the Rishi Sunak is also considering a proposal to increase corporation tax from 19% to 24%, a move that would raise £12bn next year, rising to £17bn in 2023-24, but would put the government on a collision course with businesses hit by the pandemic.

The potential increase to corporation tax would come after years of corporation tax cuts by former chancellor George Osborne brought it down to 19 per cent – among the lowest among OECD countries.

Second-home owners would also be hit under proposals to require people to pay capital gains tax at the same rate as they pay income tax.

That would involve people who own second homes and buy-to-let properties paying capital gains tax at 40 per cent or 45 per cent as opposed to the current 28 per cent when they sell the properties. 

The Ministry of Finance is also discussing the reduction of pension benefits, the introduction of a tax on electronic sales and an increase in fuel surcharges.

The measures will likely be very unpopular among Tory MPs and grassroots supporters as they are taxes squarely aimed at the wealthiest sections of British society.