Flash insights on the July 2024 Election
Bishop Fleming Chartered Accountants
Top 35 full-service accountancy firm and proud member of Kreston Global
The general election on 4 July 2024 has brought intense scrutiny to the various tax promises of the two main political parties, Labour and the Conservatives.
Our latest newsletter looks at what they have said, but also what they have not said. Understanding what these tax promises mean can have a direct impact on you and that of your business.
We are likely to have a Budget around the end of September when tax promises will crystalise into firm announcements.
Whichever party forms the next government, we know that frozen tax allowances and thresholds are dragging more people into paying tax or paying tax at higher rates. Both parties are committed to keeping those allowances frozen until 2028, equivalent to raising about 6p on income tax.
For a quick guide to the respective tax promises of the two main parties, see our Election Tax Policies quick guide .
Corporate and Business Taxes
There is broad agreement between the two main parties on corporation tax, with no major changes planned on tax rates and key reliefs such as R&D, Patent Box, Full expensing and the Annual Investment Allowance. Labour has said it would publish a Business Tax Roadmap within six months of the election.
However, there could be changes ahead under a Labour government on inheritance tax (IHT) business property relief and capital gains tax (CGT) business asset disposal relief, and it intends replacing business rates with a new property tax.
Additionally, large employers that currently pay into the Apprenticeship Levy may find themselves contributing to a new Growth and Skills Levy.
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Personal Taxes
On personal taxes, both parties are promising no increase in income tax, but the Conservatives are offering a less onerous regime for parents facing the High-Income Child Benefit Charge and are also promising further cuts to National Insurance in the long term if the country can afford it.
There may well be significant changes to CGT under a Labour government, and the current, generous pension contribution tax relief regime could be replaced with a new flat rate scheme of relief.
There is also speculation that council tax could change under a Labour government with additional bands being introduced for more expensive properties, together with a possible revaluation exercise.
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Key Takeaways from our Finance Seminars
Our recent finance seminars covered a wide range of issues facing businesses, including new accounting standards, the impact of ESG regulations, leveraging technology for management reporting, strategic tax planning, funding opportunities and possible impacts of a change of government after the election.
Explore our article for a summary of the key topics and expert advice shared during the sessions.
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