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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. 






Corporation tax




Reduce rates from 28% and 21% to 25% and 20%  - paid for by reducing complex reliefs and allowances


The future

Crack-down on avoidance

5 year road map to provide certainty

Crack-down on avoidance

Foreign investment


Simplify CFC rules & consult on a territorial system


Intellectual property

Patent box company tax breaks



Commitment to incentives

Improve and refocus relief

No comment


National Insurance


Rates & thresholds

1% increase from April 2011

No increase from April 2011 and raise payment thresholds

Look to reverse increase when funds permit


Income tax


Personal allowance

Reduced for incomes over £100,000


Increase to £10,000


Restrict tax relief for high earners


Abolish all higher rate relief on pensions



Flat rate levy

No tax breaks after 7 years


Capital gains tax


Rates & reliefs


Entrepreneurs relief up to £2 million

Gains to be taxed at income tax rates


Inheritance tax



Freeze threshold until 2014/15 

Raise threshold to £1 million  


 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. 



Date: 4th May, 2010
Author: Cathy Corns


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