The General Election ... what will this mean for the UK's tax policy going forward?
Tuesday's surprise announcement from Theresa May, calling for a snap General Election on 8 June, got us thinking about what this may mean for the UK’s tax policy going forward.
The current parliament vowed not to increase taxes, NIC or VAT, perhaps with a new parliament, this is now subject to review and quite possibly change.
With Brexit ongoing, will a new Parliament have a different view of how the VAT system is/should be working? It is well known that this is a specific area where the Office of Tax Simplification (OTS) is looking to recommend reform.
For Companies, the current Parliament has reduced the Corporation Tax rate to 19% from April 17 with a pledge to reduce this further to 17% from April 2020. It will be interesting to see whether a new government, particularly Labour……., see here http://www.standard.co.uk/news/uk/people-on-more-than-70k-could-pay-more-tax-if-labour-wins-power-a3517846.html, would look to change this.
The General Election gives uncertainty in the world of tax and opens opportunities for a new Government to alter/change previously agreed rates and commitments.
We will of course keep a watchful eye on proceedings and update our clients as and when changes are announced.