Tax Policies - General Election 2019

Source: | | 29/11/2019

Campaigning for the General Election is underway, listed below are some of the tax policies which have been announced by the three main parties.

Conservatives

Business Taxes

  • Corporation tax – the previously proposed target rate of 17% in 2020 has been dropped and therefore rates will remain at the current 19%.
  • Increases in Research and Development (R&D) tax credit rate from 12% to 13%. 

Personal Taxes

  • No increases in Income Tax, National Insurance or VAT in the next 5 years.
  • National insurance threshold to be increased from £8,628 to £9,500 next year with an aim of eventually increasing it to £12,500.
  • Capital Gains Tax – there will be a review and possible reform of Entrepreneur’s Relief.
  • An additional 3% of Stamp Duty Land Tax on properties purchased by non UK residents.

Labour

Business Taxes

  • A Corporation Tax rate for profits below £300,000 will be reintroduced.
  • Corporation tax rates over the next 3 years are planned to be as follows:
  Main Rate Small Profits Rate
2020/21  21% 19%
2021/22  24% 20%
2022/23  26% 21%

  • There will be a review of existing corporate tax reliefs.
  • R&D tax credits for large corporations will be phased out, but R&D relief for small and medium companies will remain.
  • The Patent Box relief will be abolished.

Personal Taxes

  • Income tax rates to be increased at the following income levels: 

          Over 80,000     - 45% rate; and

          Over £125,000 - 50% rate.

  • The transfer of an unused personal allowance between a married couple would be stopped.
  • Tax rates on dividends will increase as they will be taxed at same rate as all other income. 
  • The dividend tax free allowance of £2,000 will be abolished.
  • Capital gains will be taxed at the same rate as an individual’s marginal income tax rate.
  • Capital Gains Tax Entrepreneurs Relief will be scrapped.
  • There will no longer be a separate capital gains tax annual exemption but any gain under a £1,000 will be exempt.
  • Inheritance Tax – the residence nil rate band is to be abolished.
  • VAT will be charged on private school fees.
  • A second home levy will be introduced on holiday homes equivalent to 200% of the current council tax bill.

Liberal Democrats

Business Taxes

  • The Corporation tax rate will increase to 20%.
  • Business rates will be reformed and replaced with a land value tax levied on the property owner.

Personal Taxes

  • All Income tax rates will be increased by 1%.
  • There will be an increase in Air Passenger Duty for frequent flyers.
  • The Capital Gains Tax annual exemption will be abolished.
 

Latest News

Search


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login