WITH an election looming, I thought I should maybe touch on what the various parties are proposing in their manifestos, which of course does not mean any of this will become policy, especially if we have a hung parliament, which is looking increasingly likely.

The Tories propose that from April 2017, parents would each be offered a further inheritance tax nil rate band of £175,000 to be set against the value of the family home. This would be added to the existing £325,000 inheritance tax threshold, bringing the total transferable tax-free allowance to £1m. For properties worth more than £2m, the nil rate band would be gradually reduced so that those with homes worth more than £2.35m would not benefit.

Labour’s big proposal is to end the tax advantages available to resident individuals who state their main residence is outwith the UK. This has attracted a lot of attention recently with some high-profile individuals and companies taking advantage of the current system.

All parties are determined to tackle tax evasion, abuse and avoidance.

Pensions Conservatives If the Tories remain in power after the upcoming election, David Cameron has promised to keep the ‘triple lock’ system in place, which means the state pension will rise by at least 2.5 per cent every year until 2020.

Labour Labour also want to keep the ‘triple lock’ system, however, may cut pension benefits for wealthy pensioners. Annual pension input allowance could be cut from £40,000 to £30,000 and the lifetime allowance from £1.25million to £1million. Pension tax relief could be cut from 45 per cent to 20 per cent for those earning more than £150,000. Auto enrolment pensions (or workplace pensions) may be extended to workers earning more than £5773 and not restricted to those earning £10,000.

Other Parties The Lib Dems would attempt to bring in new legislation to increase the annual state pension by £790 (and would also back ‘triple lock’). The Greens would introduce a ‘Citizens Pension’ which would be set above the poverty line and assessed each year.

MORTGAGES Conservatives The Conservatives intend to retain the newly-introduced Help to Buy scheme until at least 2020 and are talking about offering 20 per cent discounts to first-time buyers under the age of 40.

Labour Labour say they will put in place plans which could help to double the number of first-time buyers by 2025. It is also their intention to bring in a mansion tax and double council tax on properties that have not been lived in for more than a year.

Other Parties The Lib Dems say they will increase house building to 300,000 a year and will include at least 10 new garden cities. The Greens would bring in a new ‘Right to rent’ policy, whereby home owners could sell their home to the council and rent it back from them.

They would also move to abolish the bedroom tax.

Regardless of what happens next week it’s going to be very interesting indeed.

You can get in touch with Billy by calling his freephone number: 0800 321 3508. Or you can reach him via the website, www.williamgeorge.info, where there is a contact page, or email him directly: w.george@ifswm.com.