General election 2017: Personal tax manifesto pledges summarised
The General Election is fast approaching and the political parties are in the final throes of election campaigning.
With the latest poll indicating a hung Parliament, it is far from clear who will emerge victorious on 9 June.
Changes to personal tax grabbed headlines recently with the Scottish budget, will they do so next week? Here is a summary of four of the party’s personal tax proposals.
The Conservatives Forward Together, Our Plan for a Stronger Britain and a Prosperous Future promise ‘A strong economy built on sound public finances, low taxes, better regulation and free trade deals with markets around the world.’
Here’s what this looks like, in terms of personal taxation:
- By 2020, increasing the personal allowance to £12,500 and the higher rate to £50,000
- Ensuring that local residents can veto high increases in Council Tax
- Not increasing the level of VAT
- Dropping the tax ‘triple lock’ and replacing it with a lower, simpler tax system.
While the Labour party have pledged a fair taxation system in their manifesto, For the Many Not the Few:
- No rises in income tax for those earning below £80,000 a year
- No increases in National Insurance Contributions or VAT
- Increase in income tax on top 5% of earners: 45p per pound for income above £80,000 and 50p for income over £123,000
- Scrap the Bedroom Tax
- Introduce an excessive pay levy charging employers for any individual earning salary over £330,000
- Increasing the tax on private medical insurance premiums
- Reduce inheritance tax thresholds.
The Liberal Democrats are proposing to Change Britain’s Future by introducing:
- An immediate 1p rise on the basic, higher and additional rates of income tax (excludes Scotland) to be replaced by a health and care tax
- A commensurate 1p increase in dividend taxation which is a UK-wide tax
- Raising the employee national insurance threshold to the income tax threshold
- Scrapping the ‘bedroom tax’
- Consider introducing a single rate of tax relief for pensions
- Enabling local authorities to levy up to 200% council tax on second homes and ‘buy to leave empty’ investments from overseas
- Reversing a number of the tax cuts, including the marriage allowance
- Raising the inheritance tax threshold.
Fair and balanced personal taxation, is the SNP’s promise. They intend to deliver this by:
- Increasing the additional rate of income tax from 45p to 50p across the UK
- Reversing the married couple’s allowance
- Freezing NICs and VAT
- Closing the loopholes in the sugary drinks tax
- Double the employment allowance from £3,000 per business per year to £6,000
- Oppose the cap that restricts Child Tax Credits to the first two children and the removal of the family element of Universal Credit
- Abolish the Bedroom Tax in Scotland
- Demand an end to new charges through the Child Maintenance Service.