UK chancellor proposes £2B tax on wealthy professionals in LLPs, raising rates by 7.3% and risking investment.

Chancellor Rachel Reeves is set to unveil a £2 billion tax plan targeting high-earning professionals—lawyers, doctors, and accountants—in limited liability partnerships (LLPs), ending their exemption from employer National Insurance Contributions. The move aims to close a growing fiscal gap, citing austerity, Brexit, and reduced capital spending as key economic challenges. The proposed tax would raise the effective rate for top earners by 7.3%, adding around £23,000 annually for some, and may include a capital gains tax on luxury home sales. While Reeves insists the wealthy must contribute more, critics warn it could deter investment and drive professionals abroad. The final budget, due November 26, may force a break from Labour’s pledge not to raise income tax, VAT, or NICs, pending the OBR’s updated growth forecast.