Posted by jonathanfullarton - May 19, 2017 9:20 am How will tax be impacted by the General Election?

With taxation plans already under the spotlight, we consider the speculation and rumoured party pledges so far.

CONSERVATIVES

Sir Michael Fallon, Defence Secretary, has suggested that the Conservatives will take lower paid workers “out of tax” entirely. Mrs May is considering an increase in the personal allowance, the point at which people start paying Income Tax. The Conservatives are likely to abandon their own “triple tax lock” commitment and although they have ruled out an increase to VAT, they have not ruled out raises to National Insurance or Income Tax.

The ‘Tories’ are also considering tax breaks to help people fund care for elderly relatives and a cap on energy prices.

LABOUR

The shadow chancellor, John McDonnell has also pledged not to increase VAT and to “protect middle and low earners”. McDonnell has ruled out raising National Insurance and Income Taxes for those earning less than £80,000. Labour will increase income tax for people earning more than £80,000.

The Labour Party have suggested that they will reverse some of what they call the Conservative Party’s recent “tax giveaways”, which have included raising the Inheritance Tax threshold so that couples can pass on homes worth up to £1 million to their children tax-free and cuts to Corporation Tax and Capital Gains Tax.

The party is also likely to raise minimum wage to £10, extend free school meals to all primary school children and increase the carer’s allowance by £10 per week.

LIBERAL DEMOCRATSThe ‘Lib Dems’ have promised to keep the pensions ‘triple lock’. This is something that Teresa May has refused to commit to. The triple lock ensures that the state pension increases each year by whichever is higher, inflation, wage growth or, 2.5 per cent increase.

The party wants to increase income tax by a penny to fund a £6bn-a-year cash injection for the NHS and social care; however, they want to scrap the winter fuel allowance for rich pensioners.

The Liberal Democrats would also increase the threshold at which students have to pay back tuition fees.

GREEN PARTY

It is expected that the Green Party will scrap tuition fees and bring back maintenance grants in a bid to make further education more accessible to all students.

SNP

Nicola Sturgeon’s party wants the removal of the Bedroom Tax and changes to Child Tax Credits policy to get rid of the controversial ‘rape clause’

UKIP

Paul Nuttall’s party have not made any specific tax pledges to date. UKIP are concentrating on immigration pledges in their manifesto.

With a General Election on the horizon chances are an emergency Budget could follow. We will keep you updated via our website news and blog areas of what’s happening and feeding back on any changes to fiscal policy.