THERE’S just weeks to go until Brits find out which taxes Andy Burnham will hike in the Budget and how their pockets will be hit.
Chancellor John Healey, who will present the Budget on October 28, has refused to rule out tax rises for households and businesses, insisting he would not “speculate”.
Meanwhile, experts say Labour may need to raise up to £14billion after government borrowing costs soared to the highest level in 28 years.
Labour pledged in its manifesto not to increase income tax, National Insurance or VAT.
But some experts believe Burnham may have his eye on a new 50% income tax rate.
This could replace the current 45% higher rate of income tax and would see someone earning £150,000 pay around £1,250 more in income tax per year.
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The PM has already hinted he wants to increase taxes on people’s assets and wealth.
Capital Gains Tax (CGT) – a tax on the profit you make when you sell or give away an asset that’s increased in value – may well be in line for an increase.
Currently, your first £3,000 of gains each year is tax-free, but after that you pay 18% if you’re a basic-rate taxpayer or 24% if you’re in a higher tax band.
Healey has previously floated the idea of bringing CGT rates closer to income tax rates.
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This could mean paying as much as 40% or 45% on your investment profits instead.
While misery may be ahead for Brit households, there’s an easy step you can take NOW to shield your cash from a Budget tax grab.
The quickest and easiest way to shield your cash
The quickest and most effective move you could make right now is to shift your money to a Cash ISA or Stocks and Shares ISA.
An ISA acts as a tax-free shield around your savings and investments, protecting any interest, dividends or growth from being taxed.
With a Cash ISA, you can put up to £20,000 in for the current 2026/27 tax year.
However, you only have until April 2027 to make the most of this Cash ISA limit, when it will change to just £12,000.
Any money already in your Cash ISA before the deadline will remain tax-free.
A Stocks and Shares ISA will invest your money in the stock market, and your returns will be based on how well these perform.
You can put up to £20,000 a year into a Stocks and Shares ISA and it means you’ll be protected from CGT.
You can start investing in a stocks and shares ISA – and a cash ISA – with as little as £1.
The top ISAs to stash your money in
It’s important to find the right ISA to suit your circumstances, as the rules can vary between different banks and accounts.
For example, some easy-access cash ISAs have limits on how much money you can withdraw and how often.
Many banks allow you to open an account with as little as a £1 – but some have a minimum amount you must deposit so make sure you check the small print.
If you’re willing to lock your cash away in a cash ISA for a longer period of time (usually between three and five years), you’re more likely to get a better rate.
But if you think you’ll want to access it sooner, opt for a one or two-year fixed account.
With a Stocks and Shares ISA, the money you make will depend on how well your investments perform.
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That means the amount of cash you have could go up or down, but over a long time, you should see your money grow, and the returns are better than with a cash savings account.
According to Moneyfacts, these are the best ISAs on the market right now that will give you the best returns on your money:
Top Cash ISAs
Furness Building Society (5-year fixed): 4.91% AER; £1,000 minimum investment
Tandem Bank (5-year fixed): 4.9% AER; £1 minimum investment
Vida Savings (5-year fixed): 4.85% AER; £1,000 minimum investment
Hodge Bank (2-year fixed): 4.81% AER; £1,000 minimum investment
Tandem Bank (2-year fixed): 4.8% AER; £1 minimum investment
Top Stocks and Shares ISAs
Beanstalk – Beanstalk ISA – minimum monthly investment £0
Chip – Stocks & Shares ISA
e-Toro – DIY Sticks & Shares ISA (Powered by Moneyfarm)
Freetrade – Freetrade Investment ISA
IG – Stocks & Shares ISA