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Labour party’s likely tax policy

28 May 2019 / Paul Beausang , Kunal Nathwani
Issue: 4697 / Categories: Comment & Analysis
Tax in a Corbyn era?

Key points

  • The Labour Party’s motive is to facilitate the irreversible transfer of wealth and power in favour of working people.
  • A 50% income tax rate would apply to individuals earning above £123 000.
  • No changes proposed to the withdrawal of personal allowances when income exceeds £100 000.
  • Labour proposes reintroducing a small companies corporation tax rate and raising the main rate.
  • The general anti-abuse rule would be extended to cover avoidance.
  • Introduction of a financial transaction tax in the financial services sector.

The election of Jeremy Corbyn as leader of the Labour Party (and John McDonnell as shadow chancellor of the exchequer) has marked one of the most significant shifts in British politics since the 1940s. The effect of this change has not yet been entirely appreciated given the ubiquitous obsession with all things Brexit. However the incremental revelation of Labour’s fiscal and tax policies since 2015 shows the prospect...

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