REFORMING STAMP DUTY – A TAX CUT FOR 98% OF THOSE WHO PAY STAMP DUTY
The slab system distorted the market with big jumps in taxes when house values climbed into a new band. Our new slice system will work like income tax, so you only pay the higher rate on the part of the property that falls within that band. 98% of buyers who pay stamp duty will pay less. The buyer of the average family home (worth £275,000) will pay £4,500 less. This is a tax cut of £800 million a year.
• Of people who pay stamp duty in the East of England, 99.0% will pay the same or less.
BACKING THE ASPIRATION TO WORK AND SAVE
When the holder of an ISA dies, a husband or wife will be able to inherit their partner’s ISA and keep its tax free status. We will abolish National Insurance Contributions for employers who employ an apprentice under 25 to back young people get the skills they need to get on in life.
• Around 45,000 apprentices in the East of England stand to benefit from a reduction in their employer’s NICs.
CUTTING INCOME TAX.
The tax-free Personal Allowance will now increase to £10,600 in April and this will be passed on in full to higher rate taxpayers – the first increase in the higher threshold in line with inflation for 5 years. This is a downpayment on our commitment to raise the higher rate threshold to £50,000 by the end of the decade.
• In the East of England, this will lift 40,000 of the lowest-paid people out of income tax altogether in 2015-16. 2.35 million people will see an average real terms wage boost of £95.
CUTTING AIR PASSENGER DUTY FOR CHILDREN
From May, APD for under 12s will be abolished and from 2016 it will be abolished for under16s.
• This will save a two child family travelling from Norwich, Southend, Stansted or Luton Airports £26 on the cost of economy short-haul flights and £142 on the cost of economy long-haul flights.
SUPPORTING SMALL BUSINESSES WITH ACTION ON BUSINESS RATES AND MORE HELP FOR THE HIGH STREET
We will again extend the doubling of Small Business Rate Relief and continue to cap the inflation-linked increase in business rates at 2%. The £1,000 discount for shops and cafes on the high street will increase to £1,500 and there will be a full review of the structure of business rates to report before Budget 2016. We will strengthen Entrepreneurs’ Relief by aligning it with Enterprise Investment Schemes, and increase the R&D tax credit for SME firms to 230%, the and extend the Funding for Lending scheme by another year – focusing it entirely on small businesses.
• 180,000 properties in the East of England will benefit from these business rates measures.
• 137,000 properties will benefit from the cap on business rates, with savings worth £10m.
• 64,000 small businesses will benefit from the extension to Small Business Rate Relief, with savings worth £44m. 43,000 of these businesses will pay no business rates at all.
• 29,000 properties will benefit from the £1,500 discount for retail properties.
SUPPORTING SCIENCE WITH HELP FOR POST GRADUATES
Student loans of £10,000 for young people undertaking post-grad masters degrees will be backed by the government for the first time.
• This could benefit the 10 universities based in the East of England.
MAJOR INFRASTRUCTURE INVESTMENT
As part of the NCS – National Infrastructure Plan announced earlier this week, 14 Strategic Road Network projects will be built, while around £174m of Government funding from its 6-year floods programme is supporting at least 120 projects in the East of England. The Government supports the key recommendations of the Norwich in Ninety Taskforce, will consider the Network Rail study into the East West Rail central section and will fund the building of a new station at Chesterton, linked to the Cambridge Science Park. Norwich and Cambridge will benefit from the continuation of the Cycle City Ambition scheme, providing capital funding for better cycle infrastructure.
TACKLING TAX AVOIDANCE
We will introduce a 25 per cent tax on multinationals that artificially divert profits, and limit how much banks can offset previous losses against profits. We will increase charges for non-doms so everyone pays their fair share.