Earlier this morning, Keir Starmer was confirmed as the new Prime Minister as Labour swept to a huge majority. This was not a huge swing in votes with just 3% more votes for Labour than there were in 2019. This was more a protect vote against the Conservatives in England and Wales and a vote against the Scottish National Party in Scotland.
That said, with 412 seats so far (2 to declare) and a majority over the Conservatives of 291 seats (they won just 121 seats), this means that anything Labour wishes to push through Parliament will happen.
It is time to get prepared and start planning your taxes now before Labour’s first budget (like to be in November).
We have suggested previously that despite Labour promises that they will not increase basic, higher, and additional rate taxes to protect working people as well as not reintroducing the lifetime allowance on pensions, they will tackle the lowest hanging fruit and no doubt raise tax revenues from other areas of taxation that were clearly not even mentioned in their manifesto document.
If you have not done so already, we suggest you need to start planning.
In just 5 minutes today, we invented 10 tax hits that would not break Labour's Manifesto promises as follows:
None of the above mean an increase to working people with little or no savings but would hit those that have inherited wealth or worked hard and built-up wealth.
Comment
You should consider acting now whilst you have current, known tax allowances and exemptions as changes are to come and the omission of capital gains tax, inheritance tax and dividend taxes in the Labour Manifesto are clearly ‘red flags’ to us.