Hot on the heals of Labour and the Conservative party, it's now time to look at the pros and cons of the tax plans of UKIP. UKIP Plan to:
-Increase personal allowance to at least £13,000
-Scrap inheritance tax
-Introduce a 30% tax rate for incomes between £43,500 and £55,000, and a 40% rate thereafter
-Make big businesses pay their fair share of tax
A vote winner for many in Middle England
If the Press are to be believed we’ll be awash with cash from big business
The personal allowance hike is a Lib Dem policy and so is hardly “original”.
Scrapping inheritance tax will leave a hole in the UK’s finances. Business owners don’t pay inheritance tax on their business property so many owner managers will only benefit on their private residences, which could be covered by a separate exemption without scrapping the whole tax.
Introducing a 30% tax rate just adds complications to the system. A transferable personal allowance from husband to wife would make more sense for couples where one partner works.
Most "big businesses" use accepted international company structures. If the use of licence fees/transfer pricing is an abuse then HMRC already has tools in its power to remove the abuse of transfer pricing. Whilst its hard to argue against big businesses paying their fair share of tax, the fact remains that small and medium businesses pay a huge amount of tax and have to deal with massive amounts of red tape and this policy won’t help them at all.
Tomorrow we’ll report on the Lib Dems’s tax policies