Below is an outline of the Conservative manifesto in relation to private client matters that might be of interest. Please note that with all governments what they promise may not actually materialise.
- The Conservative manifesto states that, if elected, a Conservative government will:
- Increase income tax personal allowance to £12,500.
- Raise the threshold for the 40% higher tax rate band to £50,000.
- Introduce legislation so that the income tax personal allowance automatically rises in line with the national minimum wage.
- Introduce a new Help to Buy ISA. This scheme was announced in the March 2015 Budget but was not included in the pre-election Finance Bill 2015.
- Will not increase VAT, National Insurance contributions (NICs) or income tax.
- Increase the inheritance tax threshold for married couples and civil partners to £1 million with a new transferable allowance of £175,000 applying only to the couples main residence.
- Continue to tackle tax evasion and aggressive tax avoidance.
- Increase the annual tax charges paid by those with non-domiciled status. The charge for paying the remittance basis has been increased in the Finance Bill 2015. It seems non-domiciled rules will not be reformed. However, there is a real possibility that stricter rules will apply when claiming non-domiciled status.
- Honour commitments to Scotland to devolve new powers and devolve more powers to Wales.
David Cameron has won the general election with an outright majority after Labour was virtually wiped out in Scotland and the Liberal Democrat vote collapsed.