Polls suggest we’re days away from a Labour government, but they may not get a clear majority with other parties such as Reform UK and Lib Dem looking to make significant gains. Each party’s manifesto has components that will impact the financial position of many people so we’re exploring just what each party is proposing.
Income Tax
Conservatives
No plans to increase rates
Labour
No plans to increase rates
Reform UK
40% tax rate to begin for those with an annual income above £70,000
Inheritance Tax
Reform UK
Abolish inheritance tax for all Estates under £2million.
What could this mean?
This would impact 98% of all estates. For Estates worth more than £2million, there will
be an inheritance tax rate of 20%, but also the option to donate to charity instead
Corporation Tax
Conservatives
No plans to increase rates
Labour
No plans to increase rates
VAT
Labour
Would introduce VAT on private school fees
Liberal Democrats
Would reduce VAT on electric vehicles to 5%
Reform UK
Abolish the VAT Tourist Tax. Reform UK report that since the government stopped the VAT refund scheme for tourists, it has deterred 2 million tourists and cost the economy over £10 billion.
Stamp Duty Land Tax
Labour
Increase stamp duty on purchases of residential property by non-UK residents by 1%
What could this mean?
In 2023, the Labour Party announced their intention to increase the existing 3%
surcharge for overseas buyers acquiring UK property, however, this hasn’t been
discussed in their manifesto. What they have said is that the money from the 1%
increase would be used to appoint 300 new planning officers.
Reform UK
Cut Stamp Duty to 0% for properties below £750k and to 2% for properties to the value of £750,000–£1.5million; and 4% for properties over £1.5million.
Pensions
Conservatives
From April 2025, the income tax personal allowance for pensioners will be increased in line with the triple lock.
What could this mean?
The pledge would mean both the state pension and pensioners’ tax-free allowance will
always rise in line with the highest of earnings, wages or 2.5 per cent.
Non-Doms
Labour
Tax overseas income of UK resident non-doms
In a matter of days we’ll know what lies ahead for those in the UK, as well as Brits overseas, but for now, we’re available for any support before we possibly see in a new government.
To get ahead of your personal financial planning, business financial planning, or charity financial planning, get in touch with our team of financial experts. With three offices across Dorset, we’re available for in-person consultations, or via video call and email for those further afield in the UK.
By Steven Martin
