The Liberal Democrats today announced further details of their alternative Budget proposals. On the tax side they would:

• Introduce a new 49% rate of income tax on incomes above ñ00,000 a year
• Abolish council tax (and council tax benefit)
• Introduce a new local income tax
• Increase the stamp duty threshold on property transactions from ö0,000 to ñ50,000
• Reduce stamp duty disadvantaged area relief for non-residential properties

The net revenue raised from these measures would, among other things, pay for a citizen's pension for those aged 75 and over, the abolition of higher education fees and the provision of free personal care for the elderly.

This press release sets out some initial analysis of the Liberal Democrats' tax proposals. Further analysis, incorporating the impact of their spending plans, will be published before the general election.

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