The election results are in and the Labour party won the country’s mandate to form a new parliament. A recurring topic of discussion and disagreement in the run up to the election was that of tax,
I am increasingly being questioned by clients on what the likely taxation impact of a new Labour government is if they win the next General Election and whether they should make changes now.
Well let’s look at what has been said, the party has ruled out increasing rates of income tax, NI, corporation tax and VAT stating they have “no plans” for further tax increases and that the party’s plans requires no additional tax to be raised.
Planning ahead is key and we advise clients against delaying the filing of returns until the last minute so that they can relax and enjoy the festive season.
There is no general guidance for the taxation of compensation for mis-selling and the tax treatment of compensation payments is a complex area which has given rise to a substantial number of tax cases.
A welcome change was announced in the March budget that you may have missed. Trusts and Estates with income less than £500 will no longer have to pay income tax.