Tax Pledges – will the Conservatives keep their promise?

In the build up to next week's Big Debate Peter Hedgethorne, Director at Plus Accounting, recalls what the Tories promised to do on taxation in their election manifesto.

Now that the dust has settled on the General Election frenzy, and we settle down to five years of non-coalition Conservative government, shall we recall what the Tories promised to do on taxation in their election manifesto? The main points were:

•    Linking the income tax personal allowance to the minimum wage so that no one working 30 hours per week on minimum wage will pay income tax.

•    Increasing the income tax personal allowance to £12,500 by 2020 (from £10,600 in 2015/16).

•    Increasing the limit for basic rate income tax to £50,000 by 2020 (from £42,385 in 2015/16).

•    No increase in rates of income tax, Vat or Nics in this Parliament.

•    30 hours free childcare per week for 3 and 4 year olds.

•    Increasing the inheritance allowance for main residences from £650,000 to £1m per married couple/civil partners.

•    Reduction in tax relief on pension contributions for people earning over £150,000.

We won’t know if all of these commitments will be honoured in full until 2020, but some should be introduced this year…….watch this space!

If you would like to discuss any of the above points in more detail email info@plusaccounting.co.uk

If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk