As experts in UK taxation, here are four things we will be looking out for after tomorrow:

As the election approaches, we are as curious as anyone to know what is going to happen.

With our accountancy hats on and our clients in mind, we can’t help but be particularly curious to hear how the parties are planning to pay for their many spending promises and what impact those plans may have on the rest of us.

The Director of the Institute of Fiscal Studies (IFS) Paul Johnson states that taxes will have to rise whichever party wins the election: but what and by how much is yet to be seen.

Here are four things we are particularly looking out for:

1. Capital Gains Tax (CGT)

A hot topic in the election debate is how Labour is going to raise money to pay for their planned improvements to public services. Promises not to raise income tax, national insurance and VAT have led some to speculate that they may make changes to CGT. As taxing CGT at a lower rate than income tax was meant to be an incentive to risk-taking entrepreneurs, reforms to CGT could have knock-on effect on the future growth of the UK economy. Whilst Starmer has not stated that he will make changes to CGT, he has also not ruled it out.

2. Pension contributions and allowances

The Conservative Party removed the lifetime allowance (LTA)on pensions in April this year and for a time Labour stated that they would reintroduce it if they won the election. While Labour have now abandoned this idea it remains to be seen if other changes are made to pensions.

3. Wealth Tax

There has been talk about Labour introducing a ‘Wealth Tax’ which would tax overall wealth rather than arising gains or income. While Labour denies this claim, Starmer’s carefully worded promise to voters that there will be ‘no tax increases for working people’ only continues to raise speculation about which taxes will increase and who they will impact the most, should they win the election.

4. Domicile rules

Under the current Conservative Government, the taxation of worldwide income and gains of those who are resident but non-domiciled in the UK, is going to change: the Remittance Basis is going to be replaced by the Foreign Income and Gains Scheme (FIGS) next April. (For more information about this go to our video https://buff.ly/3Qf43Zs). The new FIGS will see big changes to the way worldwide income is taxed in the UK, but it is possible that a Labour Government could take these changes further, even abolishing the system altogether. This would have a significant impact on non-domiciled UK residents. As experts who specialise in expatriate tax issues, this is also something we are also particularly looking out for.

To see our response to the election keep an eye out on our social media posts.

If you have any particular concerns or questions regarding your own personal circumstances, then please contact us for expert advice.If you have any questions or need assistance with Overseas Workday Relief or any other aspect of your tax affairs, please do not hesitate to contact us. Watch this short video for more: https://www.youtube.com/watch?v=PHtR24TQJqY

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