Election 2024: Potential Tax Changes Coming Within 100 Days
Who's proposed what?
Posted by Helen Beaumont on 05/06/2024 @ 8:00AM
With the General Election 2024 scheduled for the 4th of July, the political landscape in the UK looks likely to change once again. As different political parties campaign for their manifestos, one topic that has been heavily debated is tax reforms ...
Stay informed and be ready for any potential tax changes that come from the General Election 2024!
Both the Conservatives and Labour are talking up their policies, even though full manifestos have yet to be published. It seems that if Labour win (which is highly likely) they'll immediately make changes with an emergency budget, whereas the Conservatives would keep the status quo until at least 2025.
"One of the key factors to consider is the timetable for implementing new tax policies!"
The Finance (No. 2) Act 2024 was passed into law on May 24th, leaving little time for any further changes before the election. However, there are still a number of announcements made at the Spring Budget 2024 that have yet to be turned into law.
These include potential reforms to the 'non dom' tax regime, the abolition of the furnished holiday let regime, and extending inheritance tax relief to land in habitat schemes. With the possibility of an emergency budget in the aftermath of the election, these changes could be accelerated and implemented sooner than expected.
"But what exactly can we expect from the different parties when it comes to tax policies?"
Labour has already made a commitment to not increase income tax or national insurance, in an effort to quell speculation about potential tax increases. However, they have also hinted at introducing VAT and higher business rates on private schools, as well as closing loopholes in the Conservative's non dom reform plans. They have also expressed a desire to increase taxes on private equity managers and cap corporation tax at 25% for the next Parliament.
On the other hand, the Conservative's direction of travel can be gleaned from their recent Spring Budget. This includes plans to lightly reform the non dom regime, abolish the furnished holiday let regime, and reduce national insurance with a long-term ambition to eventually abolish it altogether. They also plan to lift more people out of the 'high income child benefit charge' and retain higher pension annual allowances and abolish the pension lifetime allowance.
What about other parties?
Liberal Democrats – they want to take on big businesses and wealthy people whilst taking the tax burden off the less well off. This includes windfall taxes on oil and energy company super profits and a reversal of bank tax cuts.
Greens – policies include improved tax breaks for culture and the arts and removing tax breaks on fossil fuels suppliers.
Nationalist Parties – The SNP, Plaid Cymru and the DUP have not yet been finalised. Remember that Scottish taxes differ significantly from the rest of the UK now and devolution (and even independence) may remain at the heart of the policies of these nationalist parties.
Reform UK – they're focusing on cuts to income tax, corporation tax, VAT, SDLT and IHT as well as tax reliefs for private schools and private medical cover, with a 4% delivery tax for inbound sales amongst the few tax increases proposed.
With the possibility of a new Labour government, a Labour/LibDem/SNP pact in a hung parliament, or maybe even a coalition led by the Conservatives if they survive being wiped out, there is a strong chance that these tax policies could be accelerated and implemented sooner than expected.
This could have a significant impact on taxpayers, especially those who may be affected by changes to the non dom regime or the abolition of the furnished holiday let regime so it's really important for taxpayers to stay informed and watch the General Election carefully.
Be prepared for potential changes to your tax obligations. This includes keeping an eye on the manifestos of the different parties and understanding how their proposed tax policies could affect you. With the potential for an emergency budget in the aftermath of the election, it is crucial to stay up-to-date and be prepared for any changes that may come!
With the dissolution of Parliament, a short window for newly elected MPs to make their mark, and the possibility of an emergency budget, taxpayers should be prepared for potential changes to their tax obligations.
Stay informed, stay prepared, and be ready for any potential tax changes that may come your way.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about potential tax changes following the General Election 2024, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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