The December 2019 General Election: A tax take on the manifestos
A striking feature of the 2019 General Election is the big difference in the tax proposals of the three main parties. Our tax experts have reviewed the manifestos and summarised their thoughts on what the proposed policies could mean for you and your business.
Both the Conservatives and Labour have stated that they will make changes to entrepreneurs’ relief as it has not been effective in encouraging entrepreneurship as intended and is seen as too generous. In view of this, thought should be given to the following:
- If you are in the middle of a transaction where entrepreneurs’ relief is applicable it makes sense to complete this under the existing rules.
- If there is a possibility of a sale, management buy-out, retirement or reorganisation in the near future speak to a tax advisor as more immediate tax planning advice may be beneficial.
So, what tax changes are proposed by the three main parties?
The Conservatives – business as usual, unless you are selling
From a tax perspective this is a fairly low-key manifesto with no major tax changes announced. One take-away message is the potential reform of entrepreneurs’ relief on the sale of business assets, as the Conservatives believe this is not working in its current format.
All change for the Labour Party
The Labour manifesto proposes some radical changes to the taxation of both individuals and companies.
Labour are proposing wholesale changes to capital gains tax which could transform the taxation landscape for business owners looking to exit their business.
Liberal Democrats seek reform
The Liberal Democrats’ main focus is on tackling climate change through a number of tax measures, including changes to stamp duty land tax, VAT and air passenger duty