As the coalition policies take shape, we are already seeing in clear terms the influence of Liberal Democrat views reflected in tax policy.
It was a key part of the Lib Dem manifesto to raise personal tax allowances to £10,000.
The total cost of this was estimated at £17 billion and, rather than introduce it at one go, it is being phased in over 5 years.
This will still give an income tax saving of £140 a year for everybody paying basic rate tax.
At the same time, the Conservative plan of lifting the national insurance threshold to limit the damage of the increase of 1% in the national insurance rate from next April for employees earning up to £35,000 has been shelved and the cut off point will now be the original labour threshold of £20,000.
The key Conservative policy of preventing the jobs tax for company employees up to £35,000 has, however, been retained.
Bad news for those with second homes and larger share portfolios because the coalition deal will now introduce the Lib Dem policy of taxing non-business capital gains at income rates, although not above 40%.
Behind the scenes negotiations are still going on between the two teams as to whether the Lib Dems will also be able to force through a reduction in the annual capital gains exemption from its current £10,100.
At the moment, only about 130,000 people every year pay capital gains tax but this would rise to about 500,000 if the threshold was cut to the rumoured £2,500.
For tax policy, this is the dawning of a new age. Get ready for an emergency budget on Wednesday 30 June when we can also expect a hike in VAT to 20%.
Will we see simplification of the tax process and combination on income tax and national insurance announced? Unlikely but it should end the Brown era of stealth taxes.
Author: Chris Slay
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