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UK General Election 2024
As we approach the UK general election on 4th July, the main political parties have made various tax-related promises. 
 
At Hammond-Barr Accountants, we believe our clients must stay informed about potential changes that could affect their financial planning. Let's look at what we know so far about the tax proposals from the major parties. 

Conservative Party Proposals 

The Conservatives have put forward several tax-related proposals: 
 
Unfreezing the personal allowance for those who have reached the State Pension age from April 2025 
Cutting employees' National Insurance (NI) by a further 2% by 2027/28 
Abolishing the main rate of Class 4 NI for the self-employed by 2027/28 
Confirming plans announced in the Spring Budget, such as changes to non-domiciled status and scrapping furnished holiday letting tax breaks 
 
It's worth noting that the personal allowance will remain frozen for everyone else until at least April 2028. The party has also assured that changes to NI will not affect State Pension entitlement. 

Labour Party Pledges 

Labour has focused on several key areas: 
 
Scrapping the non-dom status for tax purposes, with plans to close loopholes in the Conservative proposal 
Bringing all overseas assets in a trust within the UK inheritance tax net, regardless of when they were settled 
Making private school fees subject to standard-rate VAT, potentially taking effect midway through a term 
Pledging not to increase rates of income tax, NI or VAT 

Liberal Democrats' Bold Proposals 

The Liberal Democrats have made some ambitious tax pledges: 
 
Introducing a progressive system of capital gains tax 
Ending the controversial loan charge 
Increasing taxes for banks 
Tripling the digital services tax, though this could be challenging without an international agreement 

What Does This Mean for You? 

While it's important to remember that these are campaign promises and not confirmed policies, they give us insight into the potential direction of tax policy after the election. At Hammond-Barr Accountants, we're keeping a close eye on these developments to ensure we can provide the best advice to our clients. 
Some key points to consider: 
 
If you're nearing State Pension age, the Conservative proposal on personal allowance could be significant. 
Self-employed individuals should be aware of potential changes to Class 4 NI. 
Those with non-dom status or overseas assets should pay particular attention to Labour's proposals. 
Labour's VAT proposal could impact your finances if you have children in private education. 

We Can Help 

As we approach the election, it is more important than ever to ensure your financial planning is robust and adaptable. At Hammond-Barr Accountants, we help you navigate these potential changes and optimise your tax strategy
 
Don't wait until after the election to start planning. Contact us today to schedule a consultation and discuss how these changes could affect you. Let's work together to ensure you're prepared for the future. 
 
Remember, at Hammond-Barr Accountants, we're not just here for your annual tax return - we're your partners in long-term financial success. 

Want to know more? 

You can contact Hammond-Barr accountants on 01438 281281 or via email at [email protected]
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