“This could have significant repercussions, reducing investment incentives and potentially slowing economic growth. Similar to IHT, the prospect of being taxed twice is difficult to stomach for lots of people and there are always worries that a wealth tax is eventually levied on those with fewer assets if the economic climate dictates a higher tax take."
Greens launch manifesto with wealth tax and end of right-to-buy
The manifesto pledged to push for “major changes” to the tax system, aiming to simplify and align the rates of tax paid on income and investment gains, whatever their source, and to fairly tax excessive concentrations of wealth.
One such measure suggested by the Greens was a “wealth tax” of 1 per cent annually on assets above £10mn and of 2 per cent on assets above £1bn.
The party argued that “only a tiny minority of people would pay this tax”.
The Greens also pledged to provide 150,000 new social homes every year through several different measures.
This included new build and the purchase/refurbishment of older housing stock, and a community right to buy for local authorities for several categories of property.
June 11: The Conservative manifesto: experts' verdict
The Conservative party’s manifesto shows it is chasing the ‘grey vote’, according to industry experts
Steven Cameron, pensions director at Aegon, said pensions and pensioners were “central” to this general election.
The Conservative’s confirmed they would not only retain the state pension triple lock but go one step further with their triple lock plus plans.
However, Cameron pointed out a number of pension developments didn’t get a mention including when enhancements to auto-enrolment might be advanced.
Sunak also announced he would look to abolish national insurance for the self-employed.
Shaun Moore, tax and financial planning expert at Quilter, said the axing of the tax would present a “mixed bag of implications”.
Conservatives launch manifesto with NI and stamp duty cuts
The Conservatives have pledged to halve national insurance to 6 per cent by 2027 and scrap self-employed national insurance.
Rishi Sunak said the party’s national insurance tax costs are already worth £900 to the average worker and that, through the consistent cutting of taxes in the coming years, they will have halved NI to 6 per cent by 2027.
Sunak additionally pledged that, by the end of the next Parliament, the Conservatives will “scrap, entirely, the main rate of self-employed NI”.
Another measure was to abolish stamp duty for first time buyers purchasing a house up to £425,000.
He also promised to introduce a new form of help-to-buy to “get a new generation onto the property ladder”.
June 10: The Liberal Democrats manifesto: experts’ verdict
The Liberal Democrats manifesto has been described as “encouraging”, “very vague”, and “deeply disappointing” by industry experts.
The manifesto pledged to ensure that everyone can access housing that meets their needs.
But Ray Boulger, senior mortgage technical manager at John Charcol, cast doubt on this pledge.
