{"id":19661,"date":"2019-10-10T10:55:18","date_gmt":"2019-10-10T10:55:18","guid":{"rendered":"https:\/\/smh.group\/?p=19661"},"modified":"2023-02-15T13:18:58","modified_gmt":"2023-02-15T13:18:58","slug":"new-thinking-for-labour-on-taxes","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/","title":{"rendered":"New thinking for Labour on taxes?"},"content":{"rendered":"\n<p><strong>New proposals for <span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/capital-gains-tax\/\">reforming capital gains<\/a><\/span> and <\/strong><span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/income-tax-national-insurance\/\">income tax<\/a><\/strong><\/span><strong> have been published by an influential think tank which could make their way into an election manifesto. <\/strong><\/p>\n\n\n\n<p>The Institute for Public Policy Research (IPPR) is \u201cthe UK\u2019s pre-eminent\nprogressive think tank\u201d, according to its website. This may sound like\nboasting, but it is probably a fair description of the IPPR\u2019s position in the\nnerdy world of political think tanks. <\/p>\n\n\n\n<p>Unsurprisingly, its thoughts regularly work through to become Labour\nParty policy and, less frequently, are also \u2018borrowed\u2019 by other political\nparties. It is therefore worth taking note when the IPPR publishes proposals on\npersonal tax reform, which it did in September. With an election apparently\ndrawing ever closer, the IPPR\u2019s ideas assume even greater relevance.<\/p>\n\n\n\n<p>Its latest proposals, in a paper entitled, \u201cJust tax: Reforming the\ntaxation of income from wealth and work\u201d focus on two areas.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Taxing capital gains <\/strong><\/h3>\n\n\n\n<p>The IPPR starts from the premise that \u201cthat\nincome from wealth should be taxed the same as income from work\u201d. This\ntranslates into a plan to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>tax capital gains as income;<\/li><li>scrap the capital gains tax (CGT)\nannual exemption of \u00a312,000 and replace it with a minimal allowance of perhaps \u00a31,000;\n<\/li><li>remove the CGT exemption which\ncurrently applies on death; and<\/li><li>withdraw most CGT reliefs, other\nthan those for an individual\u2019s main residence.<\/li><\/ul>\n\n\n\n<p>The IPPR floats the possibility of reintroducing some allowance for\ninflation (remember indexation relief?) or a minimum rate of return linked to\n10-year bonds (which currently yield about 0.6%).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Income tax and National Insurance Contributions (NICs)<\/strong><\/h3>\n\n\n\n<p>The IPPR proposal here is more radical and will affect many more\ntaxpayers:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Income tax and <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/income-tax-national-insurance\/\">NIC<\/a><\/span><\/strong> rates should be merged to produce one rate, which applies to all income, from whatever source;<\/li><li>The personal allowance should be reduced to bring it into line with the starting point for NICs (about \u00a38,600); and<\/li><li>Tax rates should rise gradually, rather than using the current band approach. For example, the IPPR suggests the rate could start at 2% and rise to 50% on income above \u00a3100,000.<\/li><\/ul>\n\n\n\n<p>If this system were adopted on a tax-neutral basis, that is, producing\nthe same income for the Exchequer as the current structure, the IPPR says that\n\u201caround 80%\u201d of taxpayers would see a rise in take home pay. The obvious\ncorollary goes unmentioned.<\/p>\n\n\n\n<p>If you needed a reason to revisit your <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/\">tax planning<\/a><\/span><\/strong> now rather than later, the IPPR may have just supplied it\u2026<\/p>\n\n\n\n<p>If you would like to discuss your tax planning with one of our <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/taxation\/\">Chartered Tax Advisers<\/a><\/span><\/strong> contact us on <strong>0114 266 4432<\/strong> or <strong><span style=\"text-decoration: underline;\"><a href=\"mailto:info@smhca.co.uk\">info@smhca.co.uk<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New proposals for reforming capital gains and income tax have been published by an influential think tank which could make their way into an election manifesto. <\/p>\n","protected":false},"author":4,"featured_media":16877,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3,4],"tags":[69,21,375,227,376,19,14],"class_list":["post-19661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","category-chartered-tax-advisers","tag-capital-gains-tax","tag-income-tax","tag-ippr","tag-national-insurance","tag-personal-allowance","tag-tax","tag-tax-planning"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New thinking for Labour on taxes? - SMH Group<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New thinking for Labour on taxes? - SMH Group\" \/>\n<meta property=\"og:description\" content=\"New proposals for reforming capital gains and income tax have been published by an influential think tank which could make their way into an election manifesto.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-10T10:55:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-15T13:18:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"585\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Brendan Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/\"},\"author\":{\"name\":\"Brendan Hall\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"headline\":\"New thinking for Labour on taxes?\",\"datePublished\":\"2019-10-10T10:55:18+00:00\",\"dateModified\":\"2023-02-15T13:18:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/\"},\"wordCount\":431,\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg\",\"keywords\":[\"Capital Gains Tax\",\"income tax\",\"IPPR\",\"national insurance\",\"Personal allowance\",\"tax\",\"tax planning\"],\"articleSection\":[\"SMH Accounting &amp; Business Advisory\",\"SMH Chartered Tax Advisers\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/\",\"name\":\"New thinking for Labour on taxes? - SMH Group\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg\",\"datePublished\":\"2019-10-10T10:55:18+00:00\",\"dateModified\":\"2023-02-15T13:18:58+00:00\",\"author\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"breadcrumb\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg\",\"contentUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg\",\"width\":585,\"height\":250,\"caption\":\"Business Asset Disposal Relief\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"New thinking for Labour on taxes?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\",\"name\":\"SMH Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\",\"name\":\"Brendan Hall\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"caption\":\"Brendan Hall\"},\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"New thinking for Labour on taxes? - SMH Group","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"New thinking for Labour on taxes? - SMH Group","og_description":"New proposals for reforming capital gains and income tax have been published by an influential think tank which could make their way into an election manifesto.","og_url":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/","og_site_name":"SMH Group","article_published_time":"2019-10-10T10:55:18+00:00","article_modified_time":"2023-02-15T13:18:58+00:00","og_image":[{"width":585,"height":250,"url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg","type":"image\/jpeg"}],"author":"Brendan Hall","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Hall","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#article","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/"},"author":{"name":"Brendan Hall","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"headline":"New thinking for Labour on taxes?","datePublished":"2019-10-10T10:55:18+00:00","dateModified":"2023-02-15T13:18:58+00:00","mainEntityOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/"},"wordCount":431,"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg","keywords":["Capital Gains Tax","income tax","IPPR","national insurance","Personal allowance","tax","tax planning"],"articleSection":["SMH Accounting &amp; Business Advisory","SMH Chartered Tax Advisers"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/","url":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/","name":"New thinking for Labour on taxes? - SMH Group","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website"},"primaryImageOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage"},"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg","datePublished":"2019-10-10T10:55:18+00:00","dateModified":"2023-02-15T13:18:58+00:00","author":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"breadcrumb":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#primaryimage","url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg","contentUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Capital-Gains-Tax-FI.jpg","width":585,"height":250,"caption":"Business Asset Disposal Relief"},{"@type":"BreadcrumbList","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/new-thinking-for-labour-on-taxes\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/devstagesite.co.uk\/smhgroup\/"},{"@type":"ListItem","position":2,"name":"New thinking for Labour on taxes?"}]},{"@type":"WebSite","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website","url":"https:\/\/devstagesite.co.uk\/smhgroup\/","name":"SMH Group","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e","name":"Brendan Hall","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","caption":"Brendan Hall"},"url":"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/"}]}},"_links":{"self":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/19661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/comments?post=19661"}],"version-history":[{"count":1,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/19661\/revisions"}],"predecessor-version":[{"id":24113,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/19661\/revisions\/24113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media\/16877"}],"wp:attachment":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media?parent=19661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/categories?post=19661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/tags?post=19661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}