General Election 2015 – Tax Implications?

Jonbvn

An interesting summary from the Fry Group, which may be of interest to some:

http://www.thefrygroup.co.uk/general-election-2015-party-tax-policy/#.VNyPfPmsWSo

CONSERVATIVES – PARTY POLICY ON TAX

• Increase the personal allowance to £12,500
• Increase the basic rate band to £50,000

LIBERAL DEMOCRATS – PARTY POLICY ON TAX

• Increase personal allowance to £11,000 in the first year of the new Parliament, and gradually increase to £12,500
• A rise in the tax on dividends for additional rate tax payers
• A cut in the pension tax relief lifetime allowance to £1,000,000
• Raising the CGT rate from 28% to 35% for higher rate taxpayers
• Cutting the CGT annual allowance from £11,000 to £2,500

LABOUR – PARTY POLICY ON TAX

• A return of the 50% rate for additional rate tax payers
• Reintroduction of the 10% starting rate of income tax
• A cessation of higher rate income tax relief on pension contributions

UKIP – PARTY POLICY ON TAX

• Introduction of a new 35% rate of income tax for some people currently paying at 40%
• A proposal to scrap inheritance tax

Spidernick

They can say what they like now, but it doesn't mean any of it is going to happen! Many of the Tory pledges that never came to fruition have now conveniently been removed, the LibDems reneged on student fees and I'm sure someone will come up with some Labour examples too.

CLAPTON

Jonbvn wrote: »

An interesting summary from the Fry Group, which may be of interest to some:

http://www.thefrygroup.co.uk/general-election-2015-party-tax-policy/#.VNyPfPmsWSo

CONSERVATIVES – PARTY POLICY ON TAX

• Increase the personal allowance to £12,500
• Increase the basic rate band to £50,000

LIBERAL DEMOCRATS – PARTY POLICY ON TAX

• Increase personal allowance to £11,000 in the first year of the new Parliament, and gradually increase to £12,500
• A rise in the tax on dividends for additional rate tax payers
• A cut in the pension tax relief lifetime allowance to £1,000,000
• Raising the CGT rate from 28% to 35% for higher rate taxpayers
• Cutting the CGT annual allowance from £11,000 to £2,500

LABOUR – PARTY POLICY ON TAX

• A return of the 50% rate for additional rate tax payers
• Reintroduction of the 10% starting rate of income tax
• A cessation of higher rate income tax relief on pension contributions

UKIP – PARTY POLICY ON TAX

• Introduction of a new 35% rate of income tax for some people currently paying at 40%
• A proposal to scrap inheritance tax

the libdem seem interesting as they virtually attack anyone with a half decent income, a half decent pension pot, a few shares or with aspiration to any of these.

mind you, I doubt if Nick gives a damn: he's too busy lobbying for a nice EU job as befits a failed politician and ex deputy prime minister

antrobus

Jonbvn wrote: »

....
LABOUR – PARTY POLICY ON TAX

• A return of the 50% rate for additional rate tax payers
• Reintroduction of the 10% starting rate of income tax
• A cessation of higher rate income tax relief on pension contributions

....

That's one way to kill off the pension business.

Only a crazy person would pay £8,000 into a pension fund in order to get an extra £2,000 worth of tax relief, and then pay £3,750 tax on the proceeds when they retired.

P.S. UKIP actually have policies? Are you sure?

mayonnaise

antrobus wrote: »

P.S. UKIP actually have policies? Are you sure?

ukip has loads of policies.
All of them funded by withdrawal from the EU and slashing foreign aid.

michaels

Jonbvn wrote: »

An interesting summary from the Fry Group, which may be of interest to some:

http://www.thefrygroup.co.uk/general-election-2015-party-tax-policy/#.VNyPfPmsWSo

CONSERVATIVES – PARTY POLICY ON TAX

• Increase the personal allowance to £12,500
• Increase the basic rate band to £50,000

LIBERAL DEMOCRATS – PARTY POLICY ON TAX

• Increase personal allowance to £11,000 in the first year of the new Parliament, and gradually increase to £12,500
• A rise in the tax on dividends for additional rate tax payers
• A cut in the pension tax relief lifetime allowance to £1,000,000
• Raising the CGT rate from 28% to 35% for higher rate taxpayers
• Cutting the CGT annual allowance from £11,000 to £2,500

LABOUR – PARTY POLICY ON TAX

• A return of the 50% rate for additional rate tax payers
• Reintroduction of the 10% starting rate of income tax
• A cessation of higher rate income tax relief on pension contributions

UKIP – PARTY POLICY ON TAX

• Introduction of a new 35% rate of income tax for some people currently paying at 40%
• A proposal to scrap inheritance tax

Would Labour reintroduce the 10% rate by removing some of the increase in the personal allowance and replace it with a 10p rate instead?!

Cyberman60

Spidernick wrote: »

They can say what they like now, but it doesn't mean any of it is going to happen! Many of the Tory pledges that never came to fruition have now conveniently been removed, the LibDems reneged on student fees and I'm sure someone will come up with some Labour examples too.

Tory pledges could obviously not all be kept because they were not the sole party in government. Any party in future may well also be in coalition so promises really are just a guideline.

Cyberman60

antrobus wrote: »

That's one way to kill off the pension business.

Only a crazy person would pay £8,000 into a pension fund in order to get an extra £2,000 worth of tax relief, and then pay £3,750 tax on the proceeds when they retired.

P.S. UKIP actually have policies? Are you sure?

Nobody can say what the tax rate will be when they retire in 30-40 years time. Also, you're not allowing for growth of the pension pot over those years and the tax free sum on retirement which currently is 25% and above. Others have to manage with a mere 20% tax relief so why can't the wealthy ? Many wealthy use pension largely as a means of legal tax avoidance so I think the measure is actually a good one which will hopefully 'encourage' them to pay more tax.

Cyberman60

michaels wrote: »

Would Labour reintroduce the 10% rate by removing some of the increase in the personal allowance and replace it with a 10p rate instead?!

Just proves yet again that Labour are clueless IMO. :rotfl:
If it was so good why did they introduce and abolish it under Brown. No joined-up thinking here, just headline-grabbing and over-complicating the tax system yet again. :rotfl:groundhog day......again

michaels

Cyberman60 wrote: »

Nobody can say what the tax rate will be when they retire in 30-40 years time. Also, you're not allowing for growth of the pension pot over those years and the tax free sum on retirement which currently is 25% and above. Others have to manage with a mere 20% tax relief so why can't the wealthy ? Many wealthy use pension largely as a means of legal tax avoidance so I think the measure is actually a good one which will hopefully 'encourage' them to pay more tax.

So if the 25% can not be relied on either then surely an isa or btl is better than a pension. Worst hit will be public sector employees on a full NAL salary scheme who could see a tax bill greater than their salaries if they get a pay rise....

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