Taxation

Income Tax Rates

In the short-term income tax rates will remain the same, the only change will be the ‘personal allowance’ of tax free income which will change from £12,570 to £15,000.

This will incentivise low-earners to enter or re-enter the job market, knowing that their take home pay will be higher.

Corporate Tax & Tax Loopholes

Corporate tax will increase by 1% to 20%, raising an extra £500m for the health service.

Tax loopholes and tax avoidance is said to currently cost the economy £35bln, we will ensure that this is clamped down on and that everyone is paying their share. This will be done by simplifying the tax system, increasing transparency, strengthening penalties, improving international cooperation and increasing resources for the HMRC.

VAT

Value Added Tax standard rate will be reduced by 1%, from 20% to 19%.

Reduced rate (5%) and zero rate will remain the same.

There will be a new Increased rate of 50% which will apply to the following products:

Cigarettes

Alcohol

Sugary drinks and sweets, including chewing & Bubble gum

This would inevitable reduce the consumption of these products as well as generate additional VAT income.

Estimated additional annual income is as follows:

Cigarettes – £800 million

Alcohol – £1 billion

Sugary drinks and sweets, including chewing & Bubble gum – £80 million

Council Tax

Council tax rates would remain the same, except for in the case of second homes, details of which can be found in the Communities policy.