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28 June 202414 minute read

General Election 2024: Tax

With the UK general election less than a week away, here’s a comparison of the key tax policies of the six main political parties. It shows where each of the parties align on core tax areas, and where they may differ.

The Conservatives, Labour and SNP seem to be broadly maintaining the status quo. The Liberal Democrats and Greens want to raise significantly more tax revenues. And Reform plan significant tax cuts.

Many of each party’s tax policies are ambiguous, so their full details and implications will become clear only when the new government holds its first budget.

General Election 2024 Tax Policies
Conservatives Labour Lib Dem Green SNP Reform

Corporate Tax

No increase

No increase No increase
Pillar 2: pledge to increase global minimum rate to 21%

No increase

No increase

Reduce to 15%
Raise minimum threshold to GBP100,000
Capital Gains Tax 2-year temporary relief for landlords who sell property to existing tenants Tax carried interest as income Increased rates in new three-rate system
Increase annual allowance to GBP5,000
Align CGT and income tax rates No announcement made No announcement made

Income Tax

No increase

No increase Raise tax-free personal allowance
Review IR35 reforms
No increase to basic rate
Align tax rates on investment income with income tax and NICs rates
No increase Increase personal allowance to GBP20,000
Increase the higher-rate threshold to GBP70,000
Abolish IR35

SDLT

Raise zero-rate threshold for first-time buyers to GBP425,000

Increase surcharge on purchases of residential property by non-UK residents Surcharge on overseas residents purchasing second homes No announcement made No announcement made Cut residential rates

VAT

Keep VAT threshold under review VAT on private school fees Cut VAT on public EV charging
Remove VAT exemptions for private, first and business class flights
Remove VAT on children’s toothpaste and toothbrushes
Remove VAT from hard-pressed sectors e.g. hospitality
VAT on private school fees
Exemption for cultural events
VAT on private school fees Lower rate for hospitality and tourism
Cut VAT on public EV charging
Increase VAT threshold to GBP150,000
Abolish VAT on energy bills
Abolish VAT tourist tax

NICs

Cut employee NICs from 8% to 6% by April 2027
Abolish main rate of NICs for self-employed by April 2029
No increase No increase Remove NICs Upper Earnings Limit Full devolution of tax powers including NICs Increase rate to 20% for foreign workers

Misc

Tackle tax avoidance
Extend ‘full expensing’ policy to leased assets
Abolish non-dom regime
Windfall tax on oil and gas companies
Extend sunset clause in Energy Profits Levy
Windfall tax on oil & gas companies
Increase Digital Services Tax
Share buyback tax
Tackle tax avoidance
Wealth tax
‘Carbon tax’
Tackle tax avoidance
Reform IHT
Tackle tax avoidance Improve transparency of tax paid by multinationals Abolish IHT for estates under GBP2 million and reduce rate to 20%
20% tax relief on private healthcare & insurance
20% tax relief on all independent education