UK Conservative Party Would Hike Income Tax Bands
Friday, May 19, 2017
The ruling Conservative Party in the UK has said it would increase the middle income tax bracket and the tax-exempt threshold if reelected.
It has pledged to increase the higher rate threshold to GBP50,000 (USD65,012) from GBP45,001 currently and the personal allowance (the tax-exempt threshold) to GBP12,500 from GBP11,500 by 2020.
In its new manifesto, released ahead of the General Election on June 8, the Party also reaffirmed its earlier commitment to reduce the main rate of corporation tax to 17 percent by 2020 from its current rate of 19 percent. It has also said it would freeze the rate of value-added tax for the duration of the next parliament.
Elsewhere the manifesto outlined plans to reform business rates (commercial property tax), with more regular valuations; simplify the tax system; and clamp down on tax fraud and avoidance.
Meanwhile the Party provided more detail on its approach to Brexit, including plans for a parliamentary vote on any final agreement with the European Union on their future relationship after the UK leaves the Union.