With the UK's political parties preparing for a 12 December election battle - now would be a good time to take stock of what this might mean for tax policy, and what the proposed changes could mean for you and your clients. None of the below can be guaranteed, as we are living in uncertain times... we will have to wait and see how this plays out during the election campaign.
Conservative Party under Boris Johnson
Boris Johnson's headline tax policy during the Conservative leadership campaign was to increase the income tax higher rate threshold to £80,000. Increase the stamp duty land tax (SDLT) threshold to £500,000 (from £125,000), and slash the top rate perhaps to 7% (from 12%). The Chancellor, Sajid Javid, indicated that he was considering scrapping inheritance tax (IHT) completely and previously gave his support to scrapping the 45% additional rate of income tax for those earning over £150,000. Boris Johnson hinted that the Conservatives may reduce the corporation tax rate below the 17% rate earmarked for April 2020. The party has been silent on the topic of non-domiciliaries (non-doms). Labour Party under Jeremy Corbyn
Much of the Labour party's thinking on taxation was introduced in their 2017 election manifesto and their responses to the 2018 Budget. Labour's proposed amendment to the 2018 Budget backed reducing the income tax additional rate (45%) threshold to £80,000 (from £150,000), as well as introducing a 50% income tax rate on those earning over £125,000. Along with the Liberal Democrats, Labour has indicated that it may overhaul IHT and replace it with a 'lifetime gift tax' levied on the recipient for gifts over...