View more on these topics

Conservatives pledge to raise 40p income tax threshold to £50k

David Cameron has closed the Conservative Party conference with a promise in his keynote speech to cut taxes for 30 million people if the party wins a majority in next year’s election.

The Prime Minister said a Conservative government would raise the threshold for the 40 per cent income tax rate to £50,000, up from its current level of £41,900.

He said: “The 40p tax rate was only supposed to be paid by the most well-off people in our country but in the past couple of decades, far too many have been dragged into it: teachers, police officers.”

The tax-free personal allowance is also set to rise, from £10,500 to £12,500, taking an extra one million people out of income tax.

Someone earning minimum wage and working a 30-hour week will pay “nothing, zero, zilch”, Cameron said.

Cameron also said the Conservatives are already righting the “three great wrongs” of pension credit, compulsory annuites and the death tax on pensions.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. ‘Uncosted tax cuts are a con’ – George Osborne, November 2008.

  2. Easy for Cameron to make a promise he may not be able to keep. Or to not say,( if he should get in) in what year of the next government will the threshold be increased to £12,500 and 40% tax to start at £50k. Will it be the first or fifth year of office that it will happen? It seems to me to be a similar pledge to the one UKIP have made in saying that they will increase Threshold to £13,500 and raising 40% tax threshold.
    Isn’t it about time that the Conservatives come up with something new?

  3. Easy for Cameron to make a promise he may not be able to keep. Or to not say,( if he should get in) in what year of the next government will the threshold be increased to £12,500 and 40% tax to start at £50k. Will it be the first or fifth year of office that it will happen? It seems to me to be a similar pledge to the one UKIP have made in saying that they will increase Threshold to £13,500 and raising 40% tax threshold.
    Isn’t it about time that the Conservatives come up with something new?

  4. In its manifesto prior to the last election, the Conservative party pledged to raise the IHT Nil Rate threshold to £1m but subsequently reclassified this as an “aspiration” as opposed to a firm commitment.

    One wonders if Cameron’s promise (if we vote the Conservatives back in) of a referendum on Europe in 2017 will be similarly reclassified.

  5. All politicians have egos the size of double decker busses; its in their makeup, their DNA – but however dificult it becomes for Cameron to implement these plans and ideals, at least it shows direction, ambition, intention and is honest to Conservative principles.

    Whats the alternative? I cannot actually believe that anyone in their right mind, would vote Labour in 2015.

    Milliband is a puppet to the people at the top of his party, the very same people who dragged the UK into an unbeleiveable financial mess; one that we and our children will be paying for for years to come. At the Head of them is the most detestable politician I have ever come accross, Ed Balls!

    He has shown no contrition, no acceptance of wrong-doing when in govenrment and with a slick new hairstyle, is reinventing himself as a Chancellor. Vote him and his lot in at your peril!

  6. The PMs two income tax pledges of £7.2 billion are easily affordable all he just needs to do is get the Treasury to reduce the £13.8 billion in tax subsidies to Landlords.

    As Winston Churchill said in 1909 “Landlords render no service to the community, they contribute nothing to the general welfare, they contribute nothing to the process from which their enrichment is derived.” We need to reverse the huge increase in Landlords in recent years as immigration and student numbers are going to fall as we need to provide affordable property to our your adults.

    The PM is to be congratulated on all the help he has provided so far to First Time Buyers through Help to Buy. Besides building more affordable homes and his proposed “Rent to Buy” scheme but he needs to do more to discourage BTL landlords and “hitting them in the pocket” should do wonders to make housing in the UK more affordable as they offload their portfolios!

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com