There is much emphasis in the Manifesto on “Strong and Stable” leadership by Mrs May but not much on taxation.
The Conservative Party continues with its commitment to keep the UK corporate tax rate at the lowest rate in the G20 major trading nations. Like the Lib Dems they appreciate how important this will be when we leave the European Union to continue to attract overseas investment in the UK. The Conservatives are also committed to continuing to encourage innovation.
Although not a tax, paying for care home fees has become a significant cost for many families. The Conservative Party proposes to increase the asset threshold above which individual is required to pay towards their own care from £23,250 to £100,000. This will mean that this amount would then be available to be passed to future generations of the family. For many families paying for social care has become a bigger issue than inheritance tax. Note that the value of the family home is taken into consideration for the purposes of this asset test. Will this last following pressure from traditional Conservative voters.
There will be further anti-avoidance measures to close the “tax gap” – the gap between the tax that should be collected and that is actually collected. This will include measures to combat false self-employment in the so-called “gig” economy which will not only strengthen such workers’ rights but also ensure that the correct amount of income tax and national Insurance is paid.
Although there will be no increase in the main rate of VAT there is no mention this time about locking in the rates of income tax and National Insurance Contributions.