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What the Tory victory means for advisers

What the Tory victory means for advisers

The Conservatives won last night's general election by a landslide, with a current Tory majority of 79, as Labour lost 59 seats.

The results saw Jeremy Corbyn promising to step down from his role as leader of the Labour party and Jo Swinson lose her Dunbartonshire East seat to the SNP. 

But what could the new Conservative majority government mean for advisers?

Here's what the party promised in its election manifesto:

Brexit

Prime minister Boris Johnson has famously promised to "get Brexit done". A final sign off of the Brexit deal he brokered with the EU is expected soon, perhaps before Christmas.

This means the UK could be leaving the EU by January 31 and advisers need to be prepared to meet the regulator's requirements by that time.

Social Care 

The Conservative’s manifesto, published on November 24, was criticised by the pensions industry for its lack of detail on how it plans to fix the social care funding crisis.

Boris Johnson had promised in his first speech as prime minister that he would “fix the crisis in social care once and for all” but so far nothing concrete has materialised.

The Conservative manifesto only stated “nobody needing care should be forced to sell their home to pay for it," with no detail on how the party plans to address the funding issue.

Pensions

The party promised to tackle pension tax at both ends in its manifesto, targeting tax relief affecting both low-paid and high-paid workers.

Promises were made to fix a tax relief anomaly which means the lowest earning workers, the vast majority of whom are women, can miss out on £8,000 in pension savings over the course of their working life.

The Conservatives also pledged to fix the tapered annual allowance which is affecting doctors’ pensions, but stopped short of promising to scrap the taper altogether.

We can expect fast action on this, with the party having promised to hold an urgent review to solve the "taper problem" within the first 30 days of winning the election.

National Insurance 

The Conservative party wants to raise the national insurance threshold to £9,500 next year from £8,632, with a future aspiration to moving the threshold to £12,500. 

Commentators noted by shifting national insurance rates, rather than income tax thresholds, the party "extended the giveaway to the lowest earners".

The Conservatives pledged no increases to income tax, National Insurance and VAT under their triple tax lock.

In the aftermath of the manifesto Nimesh Shah, tax partner at Blick Rothenberg, noted it had been very light on announcements to tax, with the Conservatives opting instead for an "ultra-cautious approach" likely to avoid any pre-election controversy or scrutiny.

rachel.mortimer@ft.com 

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