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Manifesto time

Both major parties have now published their detailed manifestos for the General Election.  Clients may be interested in some of the key tax and economic points of each:

Labour (see their manifesto here) is committed to:

  • Increasing Income Tax to 50% on incomes over £150,000
  • Re-introducing a 10% starting rate of Income Tax
  • Keeping other rates of Income Tax, NIC and VAT unaltered
  • Introducing a “Mansion Tax” on houses worth over £2m
  • Abolishing non-domiciled tax status
  • Restricting tax relief on pension contributions
  • Attacking “disguised employment”
  • Increasing HMRC powers
  • Increasing penalties for evasion
  • Increasing National Minimum Wage to £8 per hour by October 2019
  • Increasing security of private tenants with guaranteed 3-year tenancies and capped rent rises
  • Promoting the building of at least 200,000 homes a year by 2020
  • Abolishing “zero-hour” contracts.

The Conservatives (see their manifesto here) promise:

  • No rise in any rates of Income Tax, NIC or VAT
  • Increasing the threshold for payment of the 40% Income Tax rate to £50,000
  • Increasing Personal Allowance to £12,500 and in future increasing it in line with increases in the National Minimum Wage
  • Introducing an extra IHT allowance of £175,000 per person available only against the family home, so bringing a couple’s IHT nil rate band up to £1m
  • Increasing the “Remittance Basis User Charge” for people domiciled outside the UK
  • Reducing tax relief for pension contributions for taxpayers with income over £150,000
  • Maintaining the “most competitive business tax regime in the G20”
  • Giving employees of “large employers” and the public sector a right to three days per year paid leave for voluntary work
  • 200,000 Starter Homes by 2020 (to be available to under 40s, at 20% off market value).

David Whiscombe

Consultant

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