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 £100,000 a year
- Abolish council tax (and council tax benefit)
- Introduce a new local income tax
- Increase the stamp duty threshold on property transactions from £60,000 to £150,000
- 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.
Authors
Carl Emmerson
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
Stuart Adam
Stuart is a Senior Economist working in the Tax sector, and focuses on analysing the design of the tax and benefit system.
Robert Chote
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