The LibDem conference has backed the Party’s economic policies including plans to scrap higher rate pension tax relief and raise the IHT threshold.
After a summation from Shadow Chancellor Vince Cable in Brighton this morning, delegates voted through the proposals that now become LibDem policy in the run-up to the next election.
As well as restricting tax relief on pension contributions to the basic rate, the Party has called for the IHT threshold to be raised to £500,000 and changes to IHT rules to limit the exemption on lifetime gifts to those made 15 years before death.
The proposals also call for a reform of housing stamp duty, ending the current ‘slab’ structure with the long term objective of ensuring all those buying properties up to £500,000 in value pay less than they currently do.
A LibDem Government would cut the basic rate of income tax by 4p and abolish council tax, replacing it with a new local tax.
Other proposals include an end to taper relief for Capital Gains Tax, a simplification of the tax code, increasing green taxes and bringing gains on property made by non-doms within Capital Gains Tax.
Cable said: “Only the Liberal Democrats have produced a costed plan to create a tax system that is fair, simple and green. I challenge Gordon Brown and David Cameron to back up their rhetoric by endorsing our plans.
“The national tax cuts will be paid for by abolishing the capital gains tax break, which allows the very rich to pay a lower tax rate than the people who clean their offices, as well as only providing tax relief for pensions at the standard rate; and raising taxes on polluters.”