The Government has increased taxes to the highest level in 70 years with more taxes to come. Medium-term growth is expected to be the lowest for 60 years. This means lower wages and less money to invest in health and other public services.
The combined works of Harry Potter is fun but dwarfed by our tax code of some 20,000 pages, the most complex in the world. This stifles growth and creates an industry of unproductive tax avoidance. Smart money and smart people will not invest in the UK nor come to the UK in a mobile world if they think we are uncompetitive in tax terms.
Reform UK is the only party that stands for cutting taxes and simplifying taxes to create higher growth, better wages and better healthcare.
LOW TAX, SIMPLE TAX CREATES FASTER GROWTH — 1.25% P.A.
Stimulus Plan — £48bn p.a.:
• Free up 6 million people from Income Tax by lifting the minimum threshold to £20,000 from £12,500 p.a. This will benefit 1 in 5 taxpayers. Basic Income Tax rate stays at 20%.
• The less well-off benefit proportionately most, saving £1,500 p.a. @£20,000 salary, circa £30 per week.
• Lift higher rate tax threshold to £70,000 from £50,000 currently; flat 40% tax rate above £70,000.
• Lift Capital Gains Tax threshold to £20,000 from £12,300, with single 20% flat rate above.
• Free up 1.2 million SMEs from paying Corporation Tax (over 80% of companies) by lifting the minimum threshold to £100,000. Raise rate thereafter from 19% to 20%.
• Cut Employer’s NI from 13.8% to 10% under £70,000.
Simplification plan highlights:
• Reduce & simplify residential Stamp Duty: 0% below £750k, 2% on £750k–£1.5m, & 4% above, will stimulate economic activity and construction.
• Abolish VAT on domestic fuel.
• Abolish Stamp Duty on share trading, will enable the City to compete globally.
• Abolish Air Passenger Duty to help the devastated travel sector.
• Abolish the burdensome Apprenticeship Levy, which ironically reduced apprentice numbers.
• Abolish business rates for small & medium firms, offset with Online Delivery Tax at 3%, will create a fairer playing field for High Street and physical versus online businesses.
• Abolish Inheritance Tax for all estates under £2m (98% of all estates). 20% tax above £2m — executors can choose to give this to registered charities or HMRC.
• Provide 100% Capital allowances on corporate investment in year 1.
• We aim to reform the over-complicated tax system on savings and pensions, that currently benefits those with the most to save. Our plan will introduce tax relief on pension withdrawal.
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