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Key Points. How Will Voting Impact Your Finance?

With the upcoming election, understanding how each political party's financial policies will affect your personal finances is crucial. From tax changes and pension adjustments to property incentives and wealth redistribution, each party has a different vision for the future. Here's a breakdown of what the Conservatives, Labour, Liberal Democrats, Green Party, and Reform UK are proposing, and what those proposals might mean for your wallet.


CONSERVATIVES

National Insurance 

  • Cut Class 1 employee contributions to 6% by April 2027

  • Abolish NI for the self-employed within five years

Taxes

  • No increase in income tax, corporation tax, or VAT

First-time Home Buyers

  • Abolish stamp duty on properties up to £425k

  • Introduce a new Help to Buy scheme with equity loans for new builds

Pensions

  • Implement 'Triple Lock Plus' ensuring state pensions rise by at least 2.5%, inflation, or average earnings

  • Maintain the 25% tax-free lump sum at retirement

Landlords

  • Temporary Capital Gains Tax (CGT) relief for landlords selling to tenants


LABOUR

Taxes

  • No increase in income tax, NI, or VAT rates

  • Remove VAT and business rate exemptions for private schools

  • Abolish tax breaks for non-domiciled individuals

Tax Avoidance

  • Invest £855m in HMRC to tackle tax avoidance

  • Close windfall tax loopholes for oil and gas companies

Pensions

  • Retain the triple lock for state pensions


LIBERAL DEMOCRATS

Income Tax:

  • Raise the tax-free personal allowance when public finances allow

Pensions:

  • Protect the triple lock for pensions

Capital Gains Tax (CGT):

  • Reform to close tax loopholes

Corporations:

  • Reverse tax cuts on bank profits

  • Increase the Digital Services Tax from 2% to 6%

Fraud Prevention:

  • Name and shame banks with poor fraud prevention records


GREEN PARTY

Wealth Tax:

  • 1% tax on assets over £10m and 2% on assets over £1bn

National Insurance (NI):

  • Remove the upper earnings limit

Investment Income:

  • Tax at the same rate as earned income

Landowners:

  • Implement a fair tax system

Rent Controls:

  • Introduce for local authorities

Pensions:

  • Ensure state pensions rise with inflation

Minimum Wage:

  • Increase to £15 an hour


REFORM UK

Income Tax:

  • Increase the threshold from £12,570 to £20,000

  • Higher rates to begin at £70,000

Stamp Duty:

  • 0% for properties up to £750k

  • 2% for properties between £750k and £1.5m

  • 4% for properties over £1.5m

Inheritance Tax (IHT):

  • Abolish for estates under £2m

Everyday Expenses:

  • Lower fuel duty by 20p per litre

  • Reduce VAT from 20% to 18%

  • Scrap VAT on energy bills

Pensions:

  • Commit to reviewing pension provisions


As the election nears, each party's financial policies will impact your wallet differently. From tax cuts and property incentives to pension guarantees and wealth taxes, understanding these plans is crucial. Make an informed choice and vote for the future that best supports your financial goals. Your vote matters!


The article outlines just some of the details regarding different political parties' financial stance and how it could impact you. It does not represent financial advice. If you would like personalised financial advice, please contact a financial adviser.

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