General Election 2019 - What Do the Parties Offer?

Income Tax rates and allowances [1]. First £12,500 0%, £5,000 savings 0%, up to £50,000 20% allowance, £50,001 40%, £150,000 45%.

Freeze income tax rates and maintain current bands. 40% on incomes over £50,000, 45% for incomes over £150,000.

Increase tax for incomes over £80,000 to 45% and £125,000 50%.

Increase all rates by 1p to 21% up to £50,000, 41% over £50,000, 46% over £150,000.

Marriage Allowance 
Worth £250 pa for basic rate taxpayers, and more for couples over age 84.

No change

Abolished

Abolished

National Insurance 
Employees pay 12% of earnings between £8,632   and £50,000 and 2% above this.

Increase the starting band to earnings of £9,500 pa saves £100 pa. Ambition to increase to £12,500 over 5 years.

No change

No change

Income from Savings Interest.
If other income does not exceed £12,500, up to £5,000 tax free with tapered allowance, where other income over £12,500-£17,500.
Tax free allowance of £1,000 for 20% 
taxpayers, £500 for 40% taxpayers. No allowance for top rate (£150,000 income) taxpayers.

No change

No change to 
allowances for 20% and 40% taxpayers but those with incomes over £80,000 would have no allowance.

No change to allowances.

Dividend Income 
Dividends under £2,000 are tax free, then taxed at 7.5%, 32.5% and 38.1% for 20%, 40% and 45% taxpayers. 

No change

Reduction in dividends allowance to £1,000. Taxed as income at 20%,40%,45% and 50%.

Abolish dividends 
allowance.  Not clear what tax rate would 
apply.

Capital Gains

No change, allowance of £12,000 pa, 10% and 20% rates, 18% and 28% on residential property not main home.

Reduce allowance to £1,000, increase tax rate to income tax rates when gain added to income, so 20%, 40%, 45%, 50%.

Abolish separate 
allowance, merge with income tax allowance.  Unclear on tax rate to be applied.

Inheritance Tax

Tax on estates of 
deceased 

If left to spouse exempt

Estates may leave £325,000 tax free, if estate includes main residence up to £175,000 tax free from April (£150,000 currently) 40% tax on balance.

Abolish the residence nil rate band currently £150,000, rising to £175,000 from April.

No detailed policy set out on existing reliefs [2].

Inheritance Tax on
Lifetime Gifts
£3,000 pa tax free plus small gifts, gifts on 
marriage, to spouse and regular gifts are exempt. Larger capital gifts are added back into the 
estate if death occurs within 7 years, with a tapered allowance 
applying from 3 years onwards. 

No change 
Conservatives have 
indicated they will review the proposals to simplify lifetime gifting as 
recommended by the Office of Tax Simplification, this could include a reduction to 5 years when lifetime gifts are added back, but with taper relief abolished.

Not in the manifesto, but support from Labour for a tax on recipients of gifts exceeding £125,000 over a lifetime at income tax rates.

Recipient of the gift to be taxed once the cumulative lifetime allowance of £250,000 has been received.  Not clear what the rate of tax would be.

Would retain spouse exemption, some business property exemption and gifts for education.

Second Homes Tax
Extra 3% stamp duty on purchase. Capital gains tax on sale at residential property rates of 18%-28%.

No change for UK
 residents. 
Extra 3% stamp duty for foreign purchasers.

Annual tax charge of 200% of council tax. Gains on sale taxed at income tax rates with £1,000 allowance.

Annual tax charge 500% of council tax.
Gains on sales taxed with no separate allowance. Foreign buyers stamp duty surcharge.