ARCUS TAXATION ACCOUNTANTS

Election 2010 

David Cameron promises an emergency budget within 50 days of taking office – so get ready for change! 

As Mr Cameron settles into his new role as Prime Minister and Nick Clegg as Deputy Prime Minister the first coalition Government in more than 80 years has to address the “deep and pressing problems” facing the UK.

 We take a quick look at the Tax Policies that may, or may not, now make it… 

1. Raising the IHT threshold to £1M – Unlikely to go ahead.  This may be pushed to the back and be nothing more than an aspiration.
2. Introducing a £2M mansion tax – Likely to be abandoned.
3. Stopping the proposed NIC’s rise next year – Likely to go ahead.  Both parties agree in principle to preserving the rise.
4. Cutting Corporation Tax – Likely to be cut to the Conservatives preferred rate of 25% (bigger companies), with possible concessions given to the Liberal Democrats on loopholes.
5. Potential VAT rises – Probable.  Could increase to help fund the UK deficit.
6. Reforming Child Tax Credits – Highly likely.  Strong agreement from both parties and an easy way of saving money.
7. Raising the Income Tax Personal Allowance to £10k – Unlikely to go ahead, as this is a definite non-starter with the Conservatives.
8. Introducing a per-plane green tax on flights – Likely to be introduced.  A green tax would improve both parties green credentials and the Conservatives are keen to encourage travellers from Air to Rail travel.
9. Ending Child Trust Funds – Highly likely to go ahead.  Both parties agree and want to end contributions to child trust funds.