With the upcoming election, understanding how each political party's financial policies will affect your personal finances is crucial. From tax changes and pension adjustments to property incentives and wealth redistribution, each party has a different vision for the future. Here's a breakdown of what the Conservatives, Labour, Liberal Democrats, Green Party, and Reform UK are proposing, and what those proposals might mean for your wallet.
CONSERVATIVES
National Insurance
Cut Class 1 employee contributions to 6% by April 2027
Abolish NI for the self-employed within five years
Taxes
No increase in income tax, corporation tax, or VAT
First-time Home Buyers
Abolish stamp duty on properties up to £425k
Introduce a new Help to Buy scheme with equity loans for new builds
Pensions
Implement 'Triple Lock Plus' ensuring state pensions rise by at least 2.5%, inflation, or average earnings
Maintain the 25% tax-free lump sum at retirement
Landlords
Temporary Capital Gains Tax (CGT) relief for landlords selling to tenants
LABOUR
Taxes
No increase in income tax, NI, or VAT rates
Remove VAT and business rate exemptions for private schools
Abolish tax breaks for non-domiciled individuals
Tax Avoidance
Invest £855m in HMRC to tackle tax avoidance
Close windfall tax loopholes for oil and gas companies
Pensions
Retain the triple lock for state pensions
LIBERAL DEMOCRATS
Income Tax:
Raise the tax-free personal allowance when public finances allow
Pensions:
Protect the triple lock for pensions
Capital Gains Tax (CGT):
Reform to close tax loopholes
Corporations:
Reverse tax cuts on bank profits
Increase the Digital Services Tax from 2% to 6%
Fraud Prevention:
Name and shame banks with poor fraud prevention records
GREEN PARTY
Wealth Tax:
1% tax on assets over £10m and 2% on assets over £1bn
National Insurance (NI):
Remove the upper earnings limit
Investment Income:
Tax at the same rate as earned income
Landowners:
Implement a fair tax system
Rent Controls:
Introduce for local authorities
Pensions:
Ensure state pensions rise with inflation
Minimum Wage:
Increase to £15 an hour
REFORM UK
Income Tax:
Increase the threshold from £12,570 to £20,000
Higher rates to begin at £70,000
Stamp Duty:
0% for properties up to £750k
2% for properties between £750k and £1.5m
4% for properties over £1.5m
Inheritance Tax (IHT):
Abolish for estates under £2m
Everyday Expenses:
Lower fuel duty by 20p per litre
Reduce VAT from 20% to 18%
Scrap VAT on energy bills
Pensions:
Commit to reviewing pension provisions
As the election nears, each party's financial policies will impact your wallet differently. From tax cuts and property incentives to pension guarantees and wealth taxes, understanding these plans is crucial. Make an informed choice and vote for the future that best supports your financial goals. Your vote matters!
The article outlines just some of the details regarding different political parties' financial stance and how it could impact you. It does not represent financial advice. If you would like personalised financial advice, please contact a financial adviser.
Comments