28 June 2024 • 14 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.
| 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 |
