● Income Tax - 45% over £80k, 50% over £125k
● Capital gains taxed at marginal income tax rates
● Reduction in annual exempt allowance for capital gains
● Excessive pay levy - TBC but likely 5% over £330k
● Non dom regime - abolished
● Entrepreneurs’ relief - abolished
● VAT on private school fees
● Reverse IHT nil rate band increases
Corporate Tax
● CT up to 26%
● Taxation of MNC’s - unitary formulary apportionment
● Abolish RDEC and Patent Box
● Review of other reliefs - SSE?
Industry specific
● Windfall Tax on oil and gas
● Retain Bank Levy
● Financial Transactions Tax
Other policy proposals
● Corporate governance changes
● 20:1 pay ratio for public sector contracts
● Inclusive ownership Fund - 10% of shares
● Minimum Wage - £10/ph for all over 16
● Focus on equality - gender and ethnicity
● Immigration - freedom of movement principles retained
There are plenty ducking stupid proposals in there. The one for VAT on private school fees is particularly bone headed. It’s much like taxing private medical. Why punish people for taking strain off a public system that is already struggling to cope?
(And if you imagine an extra bunch of kids coming to your state schools and paying the same as everyone else there (0) will somehow raise standards then pls show working).
the VAT on private school fees isn't in the manifesto. Rather vaguely they say "we will close the tax loopholes enjoyed by elite private schools".
I don't think VAT zero-rating is a loophole. And how does an elite private school differ from a private school. It could just be a raiding of schools with untaxed endowments of more than £50m. Or it could be more extreme.
Much better if they offered schools the choice - either charge VAT or admit 20% of your students from means-tested backgrounds where parents earn under £30k (and they could admit the new kids starting at reception in the 2021/22 school year). And any places in older years due to departing kids are offered to children from state schools with parents earning less than £30k.
In addition to the above, to account for additional pupils in the state system resulting from the imposition of VAT on private school fees, we have used the IFS’ estimate in ‘The demand for private schooling in England: the impact of price and quality’ of -0.26 for the elasticity of demand for private schooling, giving a 5% decrease in private school pupils and an increase in state school places as a result. Per pupil funding, based on applying the above to pupil numbers from the DfE’s ‘National Pupil Projections July 2018 (2019 update), is estimated on the same basis as above.
nit-picking, but that's analysis of what vat might do to demand - it's not an outright manifesto pledge to do it. The pledge is the (way more vague) one I quoted above.
my sweep around tax advisors would suggest that the most constructive thing to do to mitigate any impact is to knock on doors for the conservatives/sacrifice your first born.
School fees are exempt,not zero-rated. Significant elements of their costs (particularly the "elite" private ones) will be input bearing, and once you make the education supply taxable,they will be able to recover all the tax on their input costs.
Exemption isn't a free giveaway,it has a significant cost attached. Zero-rating is the free giveaway, and it has never been that.
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clifford chance have done a good client note on the 10% public beneficial ownership thing
just crib from that
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it needs to be about tax tho
ugh
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wibble?
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I could do this in one slide
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everything’s about tax ultimately, isn’t it
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Personal Tax proposals
● Income Tax - 45% over £80k, 50% over £125k
● Capital gains taxed at marginal income tax rates
● Reduction in annual exempt allowance for capital gains
● Excessive pay levy - TBC but likely 5% over £330k
● Non dom regime - abolished
● Entrepreneurs’ relief - abolished
● VAT on private school fees
● Reverse IHT nil rate band increases
Corporate Tax
● CT up to 26%
● Taxation of MNC’s - unitary formulary apportionment
● Abolish RDEC and Patent Box
● Review of other reliefs - SSE?
Industry specific
● Windfall Tax on oil and gas
● Retain Bank Levy
● Financial Transactions Tax
Other policy proposals
● Corporate governance changes
● 20:1 pay ratio for public sector contracts
● Inclusive ownership Fund - 10% of shares
● Minimum Wage - £10/ph for all over 16
● Focus on equality - gender and ethnicity
● Immigration - freedom of movement principles retained
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hahaha thanks clubbers *C&Ps*
do you anticipate any behavioural rage on your end? if they won I mean
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wait I cannot see the non dom thing
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do you anticipate any behavioural rage on your end? if they won I mean
yes
it was bad enough when the 50% rate came in last time.
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https://www.independent.co.uk/news/uk/politics/labour-non-dom-status-john-mcdonnell-policy-conference-a9114641.html
as with the WASPI £58bn it doesn't have to be in the manifesto...
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I can only imagine how enraged the self-regarding privilege-reading pinstriped buffoons who captain your industry are at this, clubbo
I say this as a friend!
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*privilege-trading
My point being that the average Guy got where he is because of who he knew rather than what he has achieved.
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yeah the non-dom thing isn't in the manifesto
has it been cancelled then?
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heh@questionarks
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There are plenty ducking stupid proposals in there. The one for VAT on private school fees is particularly bone headed. It’s much like taxing private medical. Why punish people for taking strain off a public system that is already struggling to cope?
(And if you imagine an extra bunch of kids coming to your state schools and paying the same as everyone else there (0) will somehow raise standards then pls show working).
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the VAT on private school fees isn't in the manifesto. Rather vaguely they say "we will close the tax loopholes enjoyed by elite private schools".
I don't think VAT zero-rating is a loophole. And how does an elite private school differ from a private school. It could just be a raiding of schools with untaxed endowments of more than £50m. Or it could be more extreme.
Much better if they offered schools the choice - either charge VAT or admit 20% of your students from means-tested backgrounds where parents earn under £30k (and they could admit the new kids starting at reception in the 2021/22 school year). And any places in older years due to departing kids are offered to children from state schools with parents earning less than £30k.
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"I don't think VAT zero-rating is a loophole. "
it's definitely a loop hole in the strange world of corbyn, McDonnell, laura pidcock, Richard burgeon
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the manifesto is vague tho.
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I am up for VAT on private schools
it is bollocks to suggest that the entitled are doing a favour to the rest of the world
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tbh I would implement an extra posho tax to fund state schools in the area
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ps it defo is in the manifesto
In addition to the above, to account for additional pupils in the state system resulting from the imposition of VAT on private school fees, we have used the IFS’ estimate in ‘The demand for private schooling in England: the impact of price and quality’ of -0.26 for the elasticity of demand for private schooling, giving a 5% decrease in private school pupils and an increase in state school places as a result. Per pupil funding, based on applying the above to pupil numbers from the DfE’s ‘National Pupil Projections July 2018 (2019 update), is estimated on the same basis as above.
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nit-picking, but that's analysis of what vat might do to demand - it's not an outright manifesto pledge to do it. The pledge is the (way more vague) one I quoted above.
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it clearly references a pledge to do it
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the actual undertaking includes typos, I think
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i.e. it doesn't intend to be vague
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anyway, vat on schools is a rounding error compared to the nationalisations and so on
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my sweep around tax advisors would suggest that the most constructive thing to do to mitigate any impact is to knock on doors for the conservatives/sacrifice your first born.
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School fees are exempt,not zero-rated. Significant elements of their costs (particularly the "elite" private ones) will be input bearing, and once you make the education supply taxable,they will be able to recover all the tax on their input costs.
Exemption isn't a free giveaway,it has a significant cost attached. Zero-rating is the free giveaway, and it has never been that.
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Speaking as a tax disputes specialist, I'm grateful for labour's approach to business development.
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