General Election Pledges by the Parties

With the General Election round the corner, below are the key points made by the major parties regarding taxation.

The Labour Party’s General Election pledges:

  •  Introducing a new 10p rate of tax
  •  Re-introducing the 50% top rate of income tax for people earning over £150,000
  • No rate increases of Income Tax, National Insurance or VAT
  • Abolish the controversial non dom status
  • Review of HMRC’s working practice and culture
  • Extra powers provided to Scotland so they can make more decisions over tax
  • Introducing mansion taxes on properties worth over £2m

The Conservative Party’s General Election pledges:

  • Increasing Personal Allowances to £12,500
  • Increase the 40% higher rate tax threshold to £50,000
  • No rate increases in VAT, National Insurance contributions or Income Tax
  • Married couples to be allowed to transfer their personal allowances of up to £1,060 to their partner, where both partners are basic rate tax payers
  • Increase the annual non dom charge
  • Inheritance tax threshold for married and civil couples to rise to £1m

Liberal Democrats’ General Election pledges:

  • Increase Personal Allowances to £12,500
  • Consider raising the employee National Insurance threshold to the Income Tax threshold
  • Set a target for HM Revenue and Customs to reduce the tax gap and continuing to invest in staff to enable them to meet it
  • Introduce a new offence- corporate failure to avoid economic crime. Introduce penalties for directors and custodial sentences
  • Increase annual non dom charges
  • Reform Capital Gains Tax and Dividend Tax relief
  • Introduce a High Value Property Levy for properties worth more than £2m throughout the UK
  • Allow Local Authorities to allow council tax of up to 200% on second homes

Green Party’s General Election pledges:

  • Increase the top rate of income tax to 60%
  • Increase staff at HMRC by 15,000 per year
  • Introduce legislation to reduce the tax gap
  • Replace Council Ta and Business rate with a system of Land Value Tax
  • Introduce a financial transaction tax of 0.1% on transactions on bonds and 0.01% on derivatives. Abolish existing stamp duty on transactions in shares
  • Abolish the capital gains tax threshold
  • Increase corporation tax from 20% to 30%
  • Introduce annual wealth tax of 2% where wealth exceeds £3m

 

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