Following yesterday's general election in the UK, the Conservative Party will form the new UK Government, with a significant majority. We should expect a Queen's Speech to reopen Parliament on Thursday, 19 December, and most commentators are predicting a Budget in early 2020.

Below summarises their main proposals in relation to taxation:

Income Tax, National Insurance and Capital Gains Tax

  • No increase in income tax or national insurance rates
  • The national insurance threshold to rise to £9,500 initially, though with an 'ambition' to rise to £12,500 (in line with the income tax personal allowance)
  • Review (and reform) entrepreneurs' relief
  • Continue with previously announced tightening of private residence relief rules and earlier payment rules (30 days) for capital gains tax

Corporation Tax

  • Retain corporation tax at 19% (the previously planned decrease to 17% has been deferred)

Stamp Duty Land Tax

  • Introduce a stamp duty land tax surcharge of 3% for non-residents purchasing UK residential property

Inheritance Tax

  • No major changes to the inheritance tax regime were indicated

VAT

  • No increase to the main rate of VAT

Non-Domicile Regime

  • No significant changes announced in relation to the non-domicile regime

Tax Evasion and Avoidance Measures

  • Introduce new anti-tax avoidance and evasion laws
  • Double the maximum sentence for tax fraud to 14 years
  • Create a new anti-tax evasion unit in HMRC

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.