A substantial tax base is the foundation of a strong and capable state. Taxation should be as simple and understandable as possible, easy to collect and hard to avoid. However, state expenditure should broadly match tax and other revenues across the economic cycle, with borrowing used only to fund investment anticipated to yield value greater than its cost. The secular growth in government debt as a percentage of GDP will be reversed via a combination of adequate taxes raised and general prudence in state expenditure.
- The new OECD regime ensuring minimum rates of taxation on large global enterprises, coming into effect in January 2024, will be implemented as a priority.
- Until the above OECD global accord comes into full effect, companies with a global turnover of greater than £10m and operating in the UK will pay a Turnover Tax proportionate to UK sales (calculated as 20% of the company’s declared global EBIT profit).
- The annual allowance will be restoredat all income levels, the non-domicile rule will be abolished and the corporate tax rate for SMEs will be cut to 15%. Stamp duty will be abolished on all residential land transfers below £500k, but applied at 10% on any portion above that level.
- Any residential property unoccupied for more than 183 days per annum will be subject to a vacant residential property tax levied at 1% of the property’s capital value, with all revenues from this levy flowing to the local council.
- Where a bequest is left to a direct family member, inheritance tax thresholds will be applied to each beneficiary of the estate, not the estate overall. Each child may therefore inherit £325,000 tax free. Spousal legacies will continue to be free of inheritance tax.
- A tax of 2% will be levied on all online purchases and the proceeds used to fund civic improvement in town centres across the UK.
- Pension contributions will be deductible at the basic rate of tax, not higher rates of tax as at present.