View more on these topics

Lib Dems plan tax raid on pensions and property

The Liberal Democrats are planning to raid pensions tax relief and expensive property as the party seeks to differentiate itself from the Conservatives ahead of the next general election.

The Independent reports the next Lib Dem manifesto will pledge to cut the lifetime pensions tax relief allowance from £1.25m to £1m, raising up to £2bn a year.

The lifetime allowance is £1.5m today but will drop to £1.25m in April. Last year’s party conference backed further reductions to £1m.

The party is also proposing its long-term policy of a mansion tax to introduce new bands and charges on properties worth more than £2m and more than £5m.

The measure, expected to raise a further £2bn, was almost introduced in the 2012 Budget but was vetoed at the last moment by Prime Minister David Cameron.

In a leaked document at its party conference last year, the Lib Dems said people earning £50,000 a year were “rich” and the party has consistently pushed for new wealth taxes.

A Lib Dem source told the Independent: “We have always been clear that those with the broadest shoulders should bear the greatest burden.”

At the weekend, Shadow Chancellor Ed Balls promised to re-introduce the 50p income tax rate on salaries over £150,000 after it was cut to 45p last April.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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