Key facts on tax before the election
I know everyone is close to 'electioned out' - but thought that this may be a good time to remind you of the stance taken by each of Labour, Conservative and Liberal Democrats on key taxes. I set out below a summary based on the manifestos and some speeches - the blanks mean I could find no comment on proposed changes and leave you to draw your own conclusions on that.
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Labour |
Conservative |
Lib-Dems |
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Corporation tax |
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Rates |
Reduce rates from 28% and 21% to 25% and 20% - paid for by reducing complex reliefs and allowances |
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The future |
Crack-down on avoidance |
5 year road map to provide certainty |
Crack-down on avoidance |
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Foreign investment |
Simplify CFC rules & consult on a territorial system |
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Intellectual property |
Patent box company tax breaks |
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R&D |
Commitment to incentives |
Improve and refocus relief |
No comment |
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National Insurance |
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Rates & thresholds |
1% increase from April 2011 |
No increase from April 2011 and raise payment thresholds |
Look to reverse increase when funds permit |
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Income tax |
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Personal allowance |
Reduced for incomes over £100,000 |
Increase to £10,000 |
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Pensions |
Restrict tax relief for high earners |
Abolish all higher rate relief on pensions |
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Non-domiciles |
Flat rate levy |
No tax breaks after 7 years |
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Capital gains tax |
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Rates & reliefs |
Entrepreneurs relief up to £2 million |
Gains to be taxed at income tax rates |
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Inheritance tax |
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Threshold |
Freeze threshold until 2014/15 |
Raise threshold to £1 million |
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I hope this provides some clarity.
Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552.
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Date: 4th May, 2010 |
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