General Election 2015: what the parties say about tax

The five main nationwide parties – the Conservatives, Labour, the Liberal Democrats, Ukip and the Green Party – have all now launched their manifestos and revealed what they plan to do about tax rates.

Inheritance tax changes have grabbed the headlines, but decisions about other taxes will affect far more of the population.

Here are the policies announced by each party on a range of property, business and income taxes.

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INCOME TAX

The Conservatives plan to raise the income tax personal allowance to £12,500 by the end of next parliament, and will also raise the threshold for the higher 40p income tax rate to £50,000.

Labour wants to introduce a lower income tax rate of 10p for the lowest earners in society, as well as reversing the higher rate cut by raising it to 50p. The basic and higher rates will not be altered.

The Liberal Democrats, like the Conservatives, say they will increase the personal allowance to "at least" £12,500 by the end of next parliament.

The Green Party will scrap the personal allowance, and will introduce a higher income tax band of 60p, hoping to raise £2bn.

Ukip wants to raise the personal allowance to at least £13,000, and introduce a new intermediate rate of 30p. The party would also reduce the highest income tax band from 50p to 40p.

VAT

The Conservatives would not increase the current rate of Vat.

Labour would not increase the current rate of Vat.

The Liberal Democrats say plans do not require an increase in Vat, but this is not ruled out.

The Green Party would reduce Vat on housing renovation, and for the tourism and hospitality industries.

Ukip does not spell out its Vat policy, saying only that Vat would be reformed following a UK exit from the EU. The party does say it would remove Vat from repairs to listed buildings and sanitary products (such as tampons).

NATIONAL INSURANCE

The Conservatives would not increase national insurance.

Labour would not increase national insurance rates.

The Liberal Democrats would not increase national insurance rates, and say they would like to bring the current allowance threshold inline with the income tax personal allowance.

The Green Party would significantly reduce national insurance contributions from employers, but would increase contributions from employees by abolishing the upper threshold.

Ukip does not specify its position on national insurance rates but, given their promise of a "low tax revolution", they suggest that reductions could be on the cards.

CORPORATION TAX

The Conservatives seek to maintain the most competitive corporate tax rate in the G7, by keeping corporation tax at a 20 per cent rate.

Labour says it wants to maintain the most competitive tax rate in the G7, but adds that it will not cut the current rate further. The party also does not clarify whether or not the rate will be raised.

The Liberal Democrats have ruled out changes to corporation tax, but would introduce a new corporation tax – aimed at banks only – of 8 per cent as a temporary deficit reducing measure.

The Green Party would increase corporation tax by 10 per cent to 30 per cent.

Ukip wants to establish a Treasury Commission to develop a 'turnover tax', targeted at large businesses.

MANSION TAX

The Conservatives will not implement a mansion tax.

Labour would introduce a mansion tax on properties worth £2m or more, with measures to protect asset rich, cash poor homeowners.

The Liberal Democrats would introduce a high value property levy, on homes worth over £2m. Where Labour's proposal is more of a 'flat' tax, the Liberal Democrats would have a banded system, like council tax.

The Green Party would reform council tax by requiring people in bigger homes to pay more council tax than those with smaller homes. The party would add two further bands for council tax thresholds, one at £2m, and one at £4.5m.

Ukip would not introduce a mansion tax.

INHERITANCE TAX

The Conservatives would exempt family homes worth up to £1 from inheritance tax for married couples and civil partners.

Labour does not say whether it would change current inheritance tax rules. A substantial threshold increase is thought to be unlikely.

The Liberal Democrats do not say whether they would change current inheritance tax rules. However, throughout the coalition the party blocked efforts by the Conservatives to raise the threshold.

The Green Party would scrap inheritance tax in favour of an accessions tax, where inheritance would be taxed on the wealth of the recipient, and not the donor. Recipients with wealth less than £200,000 would not be taxed.

Ukip would abolish all inheritance tax.