With the General Election approaching, there are many uncertainties regarding the parties’ tax commitments.

Labour has announced plans to raise taxes by applying VAT to private school fees, targeting overseas property investors, and reforming the tax system for non-UK domiciled individuals, all without increasing Income Tax, National Insurance, Corporation Tax, or the overall VAT rate.

The Conservatives, after raising taxes to their highest level since the Second World War, are now proposing tax cuts, including a 2% reduction in National Insurance in addition to the reduction introduced in the Spring budget. They are also considering eliminating National Insurance for the self-employed and abolishing Stamp Duty for first-time buyers.

How can we possibly plan when so much is unknown?  Much is buzzing around in our heads at the moment, here are some of our thoughts:

  • Will Capital Gains Tax (CGT) be aligned with Income Tax rates?
  • Will there be adjustments to Inheritance Tax rates, reliefs and allowances? Especially IHT Relief on let farmland?
  • Could our pensions be subject to a tax raid? Will the pensions lifetime allowance charge be re-introduced and/or income tax relief on contributions restricted?

  • Should bonuses be taken early?

We work closely with independent financial advisers (IFAs) to help you retain more of your earnings for personal use and to preserve your wealth for future generations. Regardless of what the next few months could have in store for us all, it is important to keep talking.  If the time is right to review all aspects of your tax position, please call one of our friendly tax advisers on 01223 810100 to discuss your next steps.