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  • Writer's pictureGreenline Accountants

2024 General Election

Post-Election Tax Policy and Potential Emergency Budget

Thursday , 4th July 2024 sees the UK return to the polls to elect the next government. After a general election, it's common to see an emergency budget introduced. We can therefore expect to hear from the new Chancellor by the end of 2024 and the main parties have already provided a brief insight into how future tax policy might look in their manifestos -

Labour's Proposed Tax Reforms and Commitments

Labour has pledged not to increase income tax or national insurance, likely to prevent speculation about reversing recent NI cuts. Their additional tax proposals include:

  • Imposing VAT and higher business rates on private schools

  • Closing perceived loopholes in Conservative non-dom reform plans

  • Increasing taxes on private equity managers by tightening carried interest rules

  • Capping corporation tax at 25% for the entire next Parliament

Conservative's Tax Policies from the Spring Budget 2024

The Conservative agenda, as outlined in their recent Spring budget, includes:

  • Reforming the non-dom regime to be less generous

  • Abolishing the furnished holiday let regime

  • Reducing national insurance with a long-term goal of eliminating it

  • Removing more individuals from the high-income child benefit charge

  • Maintaining higher pension annual allowances and abolishing the pensions lifetime allowance

Pre-Election Tax Planning Considerations ahead of any emergency budget

Unfortunately we can not say with any certainty what the next government what areas of tax they will target and so below are just some areas to think about rather than direct advice as to what you should do. Ultimately your own personal view on the likely outcome of the vote will dictate any potential decisions you choose make now. Such areas for consideration will include

  • Individuals: Potentially utilize tax allowances such as pension contributions, ISA allowances, capital gains exemptions, and inheritance tax allowances before any post-election budget.

  • Business Owners: Consider significant expenses like plant and machinery purchases to benefit from current full expensing or AIA. Fundraising under EIS/SEIS might also be advantageous before potential changes.

  • In-Progress Transactions: Look to complete any ongoing transactions asap to lock in current tax regimes.

  • Accelerate or Defer Transactions: If you anticipate changes in tax rates (e.g., capital gains or SDLT), adjust your transactions accordingly.

We will be providing detailed guidance as and when a post election budget is announced.


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