In the latest FTAdviser video, Money Management’s Julia Faurschou talks about the taxation promises of the main political parties vying for your attention on Thursday 7 May.
In the latest issue of Money Management, industry experts spell out what the various flavours of coalition could mean for the UK economy, a referendum on the nation’s future in the European Union and how the deficit will be tackled.
In this video, Ms Faurschou spells out the tax promises that will impact your clients to help you decide which candidate’s box you will cross next week.
She points out Labour has been the most vocal about increasing taxes as part of its plan to cut the deficit, particularly on higher-earners.
The party would introduce a progressive mansion tax on properties worth more than £2m, re-introduce the 50 per cent top rate of income tax for those earning more than £150,000, as well as re-introducing the lower 10 per cent starting rate of tax. Business rates for small firms would be cut in 2015 and then frozen in 2016.
The Conservatives have been less keen on raising taxes, Ms Faurschou notes. The party has pledged to raise the personal allowance from £10,600 to £12,500, and to increase the starting point for the 40 per cent higher tax rate from £42,400 to £50,000.
She also points out as the video was being recorded the party pledged to ban tax increases in the life of the next parliament.
The Liberal Democrats said that they would raise the income tax threshold to £12,500 and increase charges to non-domiciles, believing this would raise £130m annually, she adds.
Ukip would increase the personal allowance to £13,500 and get rid of inheritance tax, she also points out.
FTAdviser also gets Ms Faurschou’s verdict on the use of social media by the party leaders during this general election to try and capture the youth vote.
Let us know if you share her verdict on Milifandom, Cameronettes, etc, by emailing your thoughts.
emma.hughes@ft.com
