LABOUR TAX POLICIES
Labour will reinstate the 50% tax rate for income in excess of £150,000 to help get the deficit down. They will also abolish the beneficial tax rules for non-domiciled individuals so that if they are a UK resident, they will pay UK tax on their worldwide income and gains. In a measure to counter tax evasion, Labour will require Crown Dependencies to produce publicly available registries of the real owners of companies based there.
Labour also pledge not to increase the basic or higher rates of Income Tax, National Insurance or VAT. They will however reintroduce a lower 10p starting rate of tax, paid for by ending the recently introduced transferrable Married Tax Allowance.
They also promise not to extend VAT to food, children’s clothes, books, newspapers or public transport fares. Labour will cut tuition fees from £9,000 to £6,000 a year, funded by restricting tax relief on pension contributions for the highest earners and a Mansion Tax.
Labour state that they will put small businesses first in line for tax cuts. Instead of cutting Corporation Tax again for the largest firms, they will cut, and then freeze business rates for smaller business properties.