As the parties publish their manifestos ahead of the General Election this week, we provide an outline of the tax policies they are putting forward.

Please click here for our table of comparison.

In summary, below are each party’s key proposals and our interpretation of the message thereby portrayed:

 

CONSERVATIVES:

• Headline tax payable static/marginally reducing for both businesses and individuals
• Enhancement of investment-stimulating tax reliefs
• Continuing strengthening of anti-avoidance/evasion tax rules, including against multinationals

Magma’s interpretation of what the Tories are saying:

“TAX RATES ARE ABOUT RIGHT & EQUITABLY SPLIT.  TAX POLICY IS FOCUSED ON STIMULATING INVESTMENT”

 

LABOUR:

• Businesses – increase in headline tax rates for all businesses, reduce investment-based reliefs for larger businesses
• Individuals – increased income tax rates for higher earners & capital gains taxed at income tax rates, abolish non-domicile tax status
• Targeted tax increases for oil companies and multinationals
• Clampdown on tax avoidance/evasion and enhancing transparency of reporting

Magma’s interpretation of what Labour are saying:

“THOSE BUSINESSES AND INDIVIDUALS THAT MAKE MONEY MUST SIMPLY PAY MORE TAX, WHEN THEY MAKE IT”

 

LIBERAL DEMOCRATS:

• 1% increase on headline personal & business tax rates
• Abolish capital gains tax, with gains instead taxed as income
• Targeted tax increases for multinationals, as well as soft drinks, tobacco and gambling industries
• Energy-efficiency linking of non-core tax rates & levies

Magma’s interpretation of  what the Lib Dems are saying:

“THE SPLIT OF WHO PAYS WHAT PROPORTION OF TAX IS ABOUT RIGHT, BUT EVERYONE NEEDS TO PAY SLIGHTLY MORE.”

 

GREEN PARTY:

• Single universal personal tax rate (covering income tax, NIC capital gains tax and inheritance tax)
• Businesses – 5% increase in corporation tax rate
• Targeted tax increases for multinationals, banking sector and environmentally harmful industries

Magma’s interpretation of what the Greens are saying:

“PERSONAL TAX NEEDS SIMPLIFYING AND TAX RATES NEED INCREASING”

 

BREXIT PARTY:

• Few proposed changes announced
• Businesses – small tax/rates reductions and reduced red tape aimed at small businesses
• Individuals – abolish inheritance tax, zero rate VAT on all food and clothing

Magma’s interpretation of what the Brexit Party is saving:

“THE TAX SYSTEM IS PRETTY FAIR AS IT IS.  TAX ON EVERYDAY ESSENTIALS SHOULD BE REDUCED TO KEEP PRICES DOWN.”

 

To discuss any tax issues now, real or hypothetical, please contact one of our market-leading tax team on 01788 539000 or 0116 261 0061.