Moore Stephens Partner Mike Cooper has said that “businesses are likely to be disappointed by both the Labour and the Conservative parties’ position on tax reductions.” He claims that neither party is addressing businesses’ top tax concerns.
Moore Stephens carried out a survey to determine which taxes businesses would like to see reduced. The businesses surveyed identified five taxes that they would like reduced. Twenty-two per cent wanted income tax reduced; 19 per cent went for inheritance tax; 18 per cent wanted business rates reduced; stamp duty land tax came in at 15 per cent; and capital gains tax came in at 8 per cent.
Looking at the party manifestos, the Conservative Party has only tackled business rates and income tax. The Labour Party has in its manifesto proposals to raise inheritance and income taxes as well as changes to business rates.
On income tax, the Conservatives intend to increase the personal allowance to £12,500, and the higher rate tax band will be increased to £50,000. Labour wants to increase the tax rate for the top 5 per cent of earners to 45p per pound for those with incomes over £80,000 and 50p for incomes above £123,000. Labour has also said that it will introduce an excessive pay levy, which will charge employers for any employees they have earning over £330,000.
Labour has promised no rises in national insurance, whilst the Conservatives have said nothing. Both parties have promised reforms to business rates and no rises in VAT.