12 tax rises next year that you won't hear about in the Budget

Millions of households face a new round of stealth tax rises next year - even if the Chancellor never mentions them in her Budget speech.

Experts warn that a dozen key thresholds and allowances have been quietly frozen for years, meaning families will pay more tax automatically as wages and prices rise.

Personal finance analyst Sarah Coles, of Hargreaves Lansdown, said: "Even after Rachel Reeves sits down, there will be taxes that aren't mentioned at all - but we'll still end up paying more. These are the stealth taxes that rise without a sound."

While ministers trumpet headline measures, these frozen limits quietly drag more people into higher tax bands, reduce benefits, and eat into savings.

Stealth taxes you won't hear about

1. The £100,000 personal allowance trap

Once earnings hit £100,000, the personal allowance is cut by £1 for every £2 above the threshold - disappearing completely at £125,140. It has not moved since 2010. To match wage growth, it would now stand at around £164,000. The result is an effective tax rate of 60% for those caught in the middle.

2. High-income child benefit charge

Parents start losing child benefit once either earns £60,000, with the charge rising to 100% at £80,000. Although it was lifted slightly from £50,000 last year, it has still failed to keep up with inflation - it would need to be above £78,500 today.

3. Tax-free childcare cap

The £100,000 income limit for tax-free childcare hasn't changed since 2017. If it had risen in line with wages, it would now be nearly £145,000. Parents just over the line lose up to £2,000 a year in support.

4. Free childcare hours

Families lose entitlement to 30 hours' free childcare once one parent earns £100,000. The rule dates back to 2017, when wages were 45% lower. Expanding the free hours scheme has made the cliff-edge even steeper.

5. Frozen income tax bands

The personal allowance (£12,570) and higher-rate threshold (£50,270) have been frozen since 2021, despite wages jumping 26%. If they had risen in line, they'd now be £15,838 and £65,860 respectively. The top 45% rate now starts at £125,140 - down from £150,000 just two years ago.

6. Inheritance tax bands

The main £325,000 nil-rate band has been frozen since 2009, and the £175,000 residence band since 2021. With both locked until 2030, rising house and asset values will drag more estates into the tax net every year.

7. Gifting allowances

The £3,000 annual gift allowance - unchanged since 1981 - has lost over three-quarters of its value in real terms. It never features in Budget speeches, yet the freeze ensures more estates end up paying inheritance tax.

8. Dividend allowance

The allowance for tax-free dividends has been repeatedly cut, falling to just £500 this year. Even without new changes, inflation will push more savers and investors over the limit.

9. Capital gains tax

The tax-free allowance was slashed to £3,000 this year - down from £12,300 two years ago. As asset values rise, more people will be caught, even if no new change is announced.

10. Stamp duty

The basic threshold remains £125,000 - unchanged since 2006 - despite average house prices rising by more than £100,000. Without an uprating, buyers will continue to pay more tax even on modest homes.

11. VAT

The main 20% rate hasn't changed since 2011, but inflation means the Treasury's take rises automatically as prices and spending go up.

12. ISA limits

The £20,000 annual ISA allowance has been frozen since 2017. Inflation has eroded its value, leaving more savings exposed to tax. Any failure to raise it will amount to another stealth tax on savers.

Sarah Coles added: "These freezes are the easiest tax rises of all - they don't need a headline or a vote in Parliament. But they quietly take more out of our pockets every year."

How to cut your tax bill

Financial experts at Hargreaves Lansdown say there are still ways for households to fight back against creeping tax rises:

• Use your ISA - Protect up to £20,000 a year from income and capital gains tax.
• Realise capital gains gradually - Sell assets in stages and move them into an ISA.
• Maximise pension contributions - You can save up to £60,000 a year tax-efficiently.
• Salary sacrifice - Swap part of your salary for pension or childcare benefits to save on tax and NI.
• Share income with your spouse - Transfer assets or use the marriage allowance to reduce your joint tax bill.
• Make gifts - Use your £3,000 annual gifting allowance or start seven-year inheritance tax planning.
• Marriage allowance - If one partner earns below the personal allowance, transferring £1,260 can save up to £252 in tax.