Tax implications of the Election Result

The general election has ended and the Conservatives have secured a large majority winning 365 seats.

What does this mean for tax?  How will the election result affect you or your business?

Tax expert Craig Walker provides a recap of the key pledges made by the Conservatives during the election process:

Income Tax

 National Insurance

  • No increases to the rates of national insurance.
  • To increase the threshold at which national insurance starts to be payable to £9,500 from April 2020, with the aim of increasing this threshold to £12,500.
  • To increase the Employment Allowance from £3,000 to £4,000, to give small businesses further relief from national insurance.
  • To offer a one-year national insurance holiday for firms hiring ex-service personnel.

 Corporation Tax

 VAT

  • No increases to the rates of VAT.
  • To abolish VAT on sanitary products.

 Inheritance Tax

  • No significant changes proposed for IHT.

 Capital Gains Tax

 Property

  • A 3% Stamp Duty Land Tax (SDLT) surcharge for non-UK residents buying UK residential property, to be paid in addition to all other SDLT surcharges.
  • To increase the rate of Structures and Buildings Allowance to 3%.

 Business rates

  • To review the business rates system with a view to reducing the burden. To reduce the rates for retail businesses and extend the discounts to music venues, small cinemas and pubs.

 Tax compliance

  • To introduce tougher new anti-tax avoidance and evasion legislation.
  • To review the support offered to the self-employed.

Summary

The prime minister’s Brexit deal now looks likely to be pushed through Parliament by the end of January.  The economic consequences of Brexit are likely to give the Chancellor much to think about and significantly influence UK tax policy.

We can expect a Budget in February 2020 and it will be interesting to see to what extent the Conservatives’ tax proposals are implemented.  We should remember that politicians do not always follow manifesto pledges (and have even been known to borrow ideas from the opposition!)

We will keep you updated as tax policy unfolds.

For advice on how the election result could affect your tax position, please get in touch with your usual Hawsons contact.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Craig Walker

Senior Tax Manager, Sheffield

0114 266 7141

[email protected]

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