General Election 2024: Reform UK tax policy

The document contains sweeping tax cuts, including the introduction of many new reliefs and incentives. There is limited detail on how this additional revenue would be achieved. The difficultly in predicting how much extra revenue the various changes suggested could bring, and the possibility of that taking some time to raise, could lead to funding difficulties in the short and long term.

• Increase the tax-free personal allowance to £20,000 (currently £12,570)
• Keep the basic rate of tax at 20%
• Increase the higher rate threshold to £70,000 (currently £50,270)
• Increase employer national insurance to 20% for foreign workers, but retain the 13.8% rate for British citizens. Exemptions from the tax for essential health and care workers, and businesses with five or fewer employees.
• No basic rate tax to be charged for three years for all frontline NHS and social care staff
• Tax relief of 20% on private healthcare and insurance
• Tax relief at 20% on school fees
• Increase the inheritance tax nil rate band to £2 million
• Reduce the rate of inheritance tax to 20% above this threshold
• Abolish the off-payroll working rules (IR35)
• Cut entrepreneurs’ tax to 5% (possibly reducing the CGT rate for business asset disposal relief from 10% to 5%)
• costs, including mortgage interest, for rental properties
• When finances allow, introduce a 25% transferable tax allowance for married couples
• Reduce “red tape from HMRC” for farmers

• Raise the minimum profit threshold for corporation tax to £100,000
• Cut the main rate of corporation tax first to 20%, then 15% from year 3 (currently 25%)
• Abolish business rates for small and medium firms based on the high street
• Introduce an online delivery tax of 4% on large multinational companies
• Increase the VAT threshold to £150,000
• No VAT on school fees
• Scrap VAT on energy bills
• Reinstate the retail export scheme (VAT refunds for tourists)
• Tax incentives for new pharmacies and those that employ more staff
• Tax relief for businesses that undertake apprenticeships

• Reform the tax system with major simplification
• Change stamp duty land tax thresholds:
  • 0% up to £750,000 purchase price
  • 2% between £750,000 and £1.5 million
  • 4% over £1.5 million
• Reduce fuel duty by 20p a litre for residential and business users
• Abolish environmental levies
• Scrap renewable energy subsidies by introducing equivalent taxes on them
• Boost smaller food processors and abattoirs through tax breaks
• Tax incentives for development of brownfield sites
• Tax breaks and incentives for the UK defence industry
• Scrap EU regulations including on state aid
• Tax incentives to ensure that all fish caught in British waters are landed and processed in the UK
• Tax incentives to increase UK fishing fleets
• As part of a social care review, consider tax incentives and VAT breaks
• Prevent care home providers from using offshore property company structures to “avoid tax”
• Collect unpaid tax by improving HMRC competence

Approval code: NTEH70624108