With the main political parties having set out their position on a range of tax, pensions and savings issues ahead of the General Election on 4 July, AJ Bell summarises where they stand on key personal finance policies.
With less than three weeks to go to the general election, we are now in the thick of campaigning. Over the past seven days most political parties have published their manifestos and promises to the nation. Their major long-term goals have been set out, but there are still some doubts across the board about whether the overall sums and anticipated level of revenue make sense. The three main political parties seem tied on a promise not to increase income tax, national insurance and VAT, with the Conservatives going one step further to promise a cut in National Insurance contributions for employees and to abolish them for the self-employed.
Tellingly, none promised to tackle the stealth tax of frozen thresholds, at least in the short to medium term. Except for pensioners, where the Conservatives promised their triple lock guarantee plus would also apply to the personal allowance for this group, to keep them from paying tax on their state pension. There is widespread commitment to the triple-lock guarantee for state pensions, despite its rising and unpredictable cost. However, little has been said about social care – another key election issue for older generations.
Finally, Labour promised a review of workplace pensions, certainly with one eye on achieving greater consolidation and, they hope, unleashing greater productive investment in the UK. Whereas the Conservatives gave us a pension tax guarantee not to introduce any new taxes on pensions and to keep the 25% limit on tax-free lump sums. However, with all parties scrabbling down the back of the sofa to raise funds to meet election promises, there is always the possibility of the next government exploring ways to tinker with pensions to generate extra money.
Tax
State pension benefits
Private pensions
ISA
Childcare
Other
Disclaimer: These articles are for information purposes only and are not a personal recommendation or advice. How you’re taxed will depend on your circumstances, and tax rules can change.
