Key points from the Conservative party manifesto

We are summarising the key points from the three main political party manifestos that impact financial planning. Here are the key policies from the Conservatives: Personal taxes

No increases in income tax rates.
No increase in NIC rates.
NIC threshold to be raised to £9,500 for 2020/21 with an “ultimate ambition” to raise it to £12,500. The costings document allows only for the increase to £9,500.
“…review and reform Entrepreneur’s Relief” but no other comment on capital gains tax.
No comment on inheritance tax.
Double the maximum prison term to 14 years for individuals convicted of the most egregious examples of tax fraud.
Consolidate existing anti-evasion and avoidance measures and powers.

Businesses

Reverse current legislation to maintain corporation tax at 19% in 2020/21. This is the major source of additional revenue for the Conservatives, amounting to £6.3bn by 2023/24.
Increase R&D tax credit rate to 13% and review the definition of R&D.
No increase in VAT rates.
Increase NIC Employment Allowance from £3,000 to £4,000.
Introduce a one-year employer NICs holiday for employers that hire people up to one year after they have left the armed forces.
“…review and reform Entrepreneur’s Relief”.
Reduce business rates “via a fundamental review of the system”. Initially reduce business rates for retail businesses and extend the discount to grassroots music venues, small cinemas and pubs. For the 2020/21 year only, the costings document shows the cut amounting to £320m - approximately 1% of total business rates revenue.
Increase the straight line allowance for structures and buildings from 2% to 3%.
“…explore how...better [to] support the self-employed.”
Seed Enterprise Investment Scheme and Enterprise Investment Scheme to “continue in the next Parliament”.

Gig economy

“…ensure that workers have the right to request a more predictable contract and other reasonable protections.”

Social Care

Additional funding of £1bn a year for “more social care staff and better infrastructure, technology and facilities” throughout the term of the Parliament rather than just 2020/21, as previously announced. There is no explicit funding for this in the costings document, suggesting it may be derived from further council tax levies.
“…build a cross-party consensus to bring forward an answer that solves the problem.”
The “prerequisite of any solution will be a guarantee that no one needing care has to sell their home to pay for it”.

Social Security, Housing

“Continue the roll out of Universal Credit”.
End the working-age benefit freeze.
3% SDLT surcharge on non-UK resident buyers of residential property.
No longer allow claims for child benefit for children living overseas.

State Pensions

Keep the triple lock, the winter fuel payment, the older person’s bus pass and “other pensioner benefits”.
“…recognise the value of free TV licences for over-75s and believe they should be funded by the BBC.”

Private Pensions

“…address the ‘taper problem’ in doctors’ pensions... Within the first 30 days, hold an urgent review, working with [representative bodies] to solve the problem”. There is no costing given.
Conduct a “comprehensive review” of how to “fix” the issue of net pay pension schemes for those with earnings between £10,000 and £12,500.
Reintroduce the Pension Schemes Bill 2019-20, covering collective defined contribution (CDC), action against employer pension debt and pension dashboards.
“…unlock long-term capital in pension funds to invest in and commercialise…scientific discoveries.”

Tuition Fees

“…look at the interest rates on loan repayments with a view to reducing the burden of debt on students.”