As time passes during the present election campaign, its seems more likely that we may have a change of government from the 5 July.
Labour have disclosed a number of tax changes they would introduce. To summarise they are:
- Private school fees will attract VAT at 20% which private schools will no doubt pass on to parents. The Labour Party has also said it will also end business rates relief for private schools. The £1.7bn raised by this move will be used to improve local authority schools.
- There may be changes to the taxation of Non-Doms to close loopholes that the Labour Party considers are unfair.
- To introduce a windfall tax on the profits of the energy supply companies.
They have also been vocal in confirming that they will not raise Income Tax, National Insurance or VAT (apart from the changes highlighted above).
In contrast, the Conservative Party has pledged to:
- Introduce a triple-lock pension allowance that would raise the tax-free pension allowance by at least 2.5% a year.
- They would raise the threshold for the claw back of child benefits (the High Income Child Benefit Charge) to £120,000 and base the income on household income rather than the income of the highest wage earner.
- Longer term, the Chancellor has disclosed his intention to reduce employees NIC and consider scrapping Inheritance Tax.
Of course, we will have to wait for the outcome of the election and then the formal disclosure of any future tax changes. Which ever party assumes control, let us hope we can look forward to a period of economic growth. If the pundits are correct, expanding economic activity and productivity are the necessary ingredients to increase prosperity. Fingers crossed that the new brooms are up for this task.