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
Corporation 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
Inheritance Tax
- No major changes to the inheritance tax regime were indicated
VAT
- No increase to the main rate of VAT
Non-Domicile Regime
- 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
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