June 14, 2024
Party claims tax cuts can be funded by ending stealth subsidy paid to high street banks at a cost to taxpayers of more than £25bn.

Reform pledges to lift income and inheritance tax thresholds

Reform UK will on Monday say it would lift the thresholds for income and inheritance tax as the party unveils its economic strategy.

Reform claims the tax cuts could be funded by ending a stealth subsidy paid to high street banks at a cost to taxpayers of more than £25 billion.

Nigel Farage, the party’s leader, and Richard Tice, the chairman, will call for the income tax starting point to be lifted from £12,570 to £20,000, which they say will save every worker almost £1,500 a year.

The basic rate would stay at 20 per cent, but the point at which people would start paying the higher rate of 40 per cent would increase from £50,000 to £70,000.

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This would be allied to the abolition of inheritance tax for estates worth under £2 million in a pledge that increases pressure on the Conservatives to promise their own changes.

The current threshold for inheritance tax is £325,000, although there are some exceptions for family homes. Reform is also proposing to reduce the rate at which the tax is applied, from the current 40 per cent level to 20 per cent.

In reality, the policy will not be implemented after the general election, given that Reform has no prospect of becoming the governing party (Jack: I wouldn’t bet ten cents on that.)

More (paywall)…

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