Rachel Reeves's 'triple whammy' of taxes risks 'punishing' millions

Rachel Reeves's "triple whammy of taxes" risks "punishing" British investors at the next Budget, the Tories have warned. The measures said to be on the table include scrapping the £500 tax free dividend allowance, removing inheritance tax relief entirely on AIM shares, and increasing dividend tax rates.

Sir Mel Stride, Shadow Chancellor, said: "We know Rachel Reeves is putting her plans together for yet more tax rises to fill the black hole she has created in the public finances. The Government need to urgently rule out these tax hikes on savers and investors before speculation causes further economic harm. Labour don't understand how business works and how to create growth. More taxes on investment, entrepreneurship and saving are the last thing our economy needs right now."

Scrapping the dividend allowance would cost investors £325million a year, one analysis has suggested.

Ditching the exemption would also drag an estimated 5.22million more people into paying dividend tax, the Tories said.

Andrew Griffith, Shadow Business and Trade Secretary, said: "Once again, the British public are faced with more punishing tax rises from this Labour Government.

"The British economy needs confidence, it needs certainty, and it needs investment - but so long as Labour refuse to rule out this punishing raft of new taxes then investors will continue to be put off and growth will continue to falter.

"Labour must do the right thing for the country and rule out these taxes. Only the Conservatives will stand up for sound money and low taxes."

Labour has been contacted for comment.