It should not be forgotten that UK property investors are facing a raft of tax changes from 6 April 2020, with the restriction to mortgage interest relief taking full effect, new limitations to main residence relief and the CGT payment window shortening to 30 days.
UK property investors will be relieved that the manifesto does not propose any further tax restrictions, after years of consistent changes.
It is difficult to see what more a future government may do with property tax, as property has become one of the most heavily taxed asset classes.
There are a number of facets of the personal tax system which urgently need to be addressed, such as the High Income Child Benefit Charge, the tapering of the personal allowance for earnings over £100,000 creating an effective rate of tax of 60 per cent and issues facing the self-employed community with proposed changes to the IR35 rules.
It would have been too much to expect for these pressing issues to have been addressed or even acknowledged in this Conservative Manifesto, at the risk of facing any criticism.
Overall, the Conservative Manifesto proposals are fairly static, and it remains to be seen if more significant and radical policies will be introduced at a Budget following the General Election, should the Conservatives gain a working majority.
After all, the incumbent Chancellor has proclaimed himself a ‘low tax guy’ who is striving to simplify the UK’s tax system.
For now, it would appear that Conservatives have been very prudent in their policies when compared to their rivals, opting for a more cautious strategy in their manifesto.
Nimesh Shah is a partner at tax and advisory firm Blick Rothenberg
