Following yesterday’s general election in the UK, the Conservative Party will form the new UK Government, with a significant majority. We should expect a Queen’s Speech to reopen Parliament on Thursday, 19 December, and most commentators are predicting a Budget in early 2020.
Below summarises their main proposals in relation to taxation:
Income Tax, National Insurance and Capital Gains Tax
- No increase in income tax or national insurance rates
- The national insurance threshold to rise to £9,500 initially, though with an ‘ambition’ to rise to £12,500 (in line with the income tax personal allowance)
- Review (and reform) entrepreneurs’ relief
- Continue with previously announced tightening of private residence relief rules and earlier payment rules (30 days) for capital gains tax
- Retain corporation tax at 19% (the previously planned decrease to 17% has been deferred)
Stamp Duty Land Tax
- Introduce a stamp duty land tax surcharge of 3% for non-residents purchasing UK residential property
- No major changes to the inheritance tax regime were indicated
- No increase to the main rate of VAT
- No significant changes announced in relation to the non-domicile regime
Tax Evasion and Avoidance Measures
- Introduce new anti-tax avoidance and evasion laws
- Double the maximum sentence for tax fraud to 14 years
- Create a new anti-tax evasion unit in HMRC
Kieron Clement-Smith – “With a Conservative victory in the general election clients and their advisers should expect relatively modest changes to the UK tax landscape, rather than the significant overhauls included in the Labour Party’s manifesto, many of which would have had significant tax consequences for landlords, non-domiciliaries, business owners and many others.”
If you have any questions regarding this topic, please contact Kieron Clement-Smith or any other member of our Private Client or Tax teams.
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