The Institute of Directors’ Head of Taxation, Stephen Herring introduces the third of the IoD's Manifesto papers into what business wants from government after the General Election.
Here are his top 9 tax points for the politicians to implement after the General Election
- Initiate a broad-based ‘Day 1’ consultation on business rates, focussing upon commercial property revaluations and improving reliefs for SMEs
- Reform NICs to establish a level playing field between different business entities, but do not use this to hide an increase in the tax take from NICs
- Review corporation tax from the perspective of SMEs, and consider how it could be reformed or replaced by a much simpler business tax
- Instruct HMRC to issue a ‘white-list’ for acceptable tax planning arrangements, to differentiate these from tax abuse and aggressive tax avoidance
- Recognise that the UK needs to have a tax framework, tax rates and tax reliefs that are second-to-none to compete for foreign direct investment, not just an attractively low corporation tax rate
- Increase the Annual Investment Allowance (‘AIA’) from £200,000 to £1 million, to encourage capital investment by SMEs and improve productivity in this key sector
- Remove the income tax hikes to 60% at £50,000 and £100,000, both to simplify the tax system and to restore incentives for middle managers and other key employees
- Reform and simplify the tax reliefs for investments in start-ups and scale-ups, and boost tax reliefs for longer term investment in equity capital for such businesses
- Recognise that the UK economy is not under-taxed, indeed it is over-taxed in comparison to the other key successful global economies
A Tax Code for an Enterprising Country
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