Personal Tax and the General Election 2015 – Party Policy
George Osborne will deliver his final Budget of this Parliament on 18 March 2015, but what lies next?
Parliament will be dissolved on 30 March 2015, and only then will the election campaign really get underway giving us a proper steer on the policies each of the major Parties will be promoting.
Our focus, of course, is on the financial aspects of each campaign, and most importantly how the tax policies of the Parties may affect you.
The Conservatives have committed to generating a budget surplus in the next Parliament, promising to do so without tax increases which, without looking at how they may balance the books, makes good reading for the UK tax payer. The Liberal Democrats have also pledged to balance the books but they will be raising 20% of the required funds through tax increases. The Labour Party have hinted that in order to bring the deficit back into line, they will be raising taxes.
In terms of headlines the key announcements so far have been:
CONSERVATIVES – PARTY POLICY ON TAX
- Increase the personal allowance to £12,500
- Increase the basic rate band to £50,000
LIBERAL DEMOCRATS – PARTY POLICY ON TAX
- Increase personal allowance to £11,000 in the first year of the new Parliament, and gradually increase to £12,500
- A rise in the tax on dividends for additional rate tax payers
- A cut in the pension tax relief lifetime allowance to £1,000,000
- Raising the CGT rate from 28% to 35% for higher rate taxpayers
- Cutting the CGT annual allowance from £11,000 to £2,500
LABOUR – PARTY POLICY ON TAX
- A return of the 50% rate for additional rate tax payers
- Reintroduction of the 10% starting rate of income tax
- A cessation of higher rate income tax relief on pension contributions
UKIP – PARTY POLICY ON TAX
- Introduction of a new 35% rate of income tax for some people currently paying at 40%
- A proposal to scrap inheritance tax
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