Brexit Party plan to ‘abolish inheritance tax’

The Brexit Party want to stop inheritance tax (IHT) and exempt small businesses with profits before tax of under £50,000 from corporation tax

Rather than releasing a manifesto, the Brexit Party has distributed a 24-page ‘contract with the people’ (a targeted set of deliverable pledges) as they are not seeking election as a government, they simply want to deliver Brexit.  

In the contract, the Brexit Party said they want to: ‘Abolish inheritance tax (IHT). This hated “grief” tax raises less than 1% of total tax revenue. It is “double taxation” on a lifetime’s assets, levied at a time of family distress.’

The Brexit Party want to want to attract investment and jobs with a series of targeted incentives to drive growth and increase the tax take.

In their contract they said they want to: ‘Free up small businesses, the most dynamic part of the economy, to do what they do best — creating new jobs. We will exempt from corporation tax those one million companies with profit before tax of under £50,000.

‘One million companies — some 66% of the total number — pay less than £10,000 corporation tax. This represents just 6% of the total corporation tax take in 2019; £3.4bn. In addition, these smaller firms face the time-consuming and costly burden of audit and compliance.’

They also want to ‘overhaul financial services regulation, cut red tape, increase competition and boost lending to small and medium enterprises’.

On VAT they propose to: ‘remove the current 5% VAT on domestic fuel replacing it with a zero rating VAT saving an average £65 per household’.

They plan to support the high street by replacing business rates with a simpler system for retailers and leisure operators outside the M25, with any reductions funded by an online sales tax. 

Interest on student loans would also be scrapped by The Brexit Party: ‘which will improve the debt recovery rate, and introduce a new workable apprenticeship scheme’.

They pledge to raise £200bn through a number of proposals including scrapping the HS2 high speed rail link, keeping the £13bn annual EU contribution, recovering £7bn from the European Investment Bank (EIB) and redirecting 50% of the foreign aid budget (£40bn over a five-year term).

The Brexit Party plans to invest in public services, the environment and fishing and strategic industries.

‘Their contract said: ‘Invest £2.5bn in our fishing and coastal communities: with a clean-break Brexit we recover control of a 200 mile exclusive economic zone (or the median line), creating the opportunity to regenerate our coastal communities with new investment, jobs and tourism.

‘Invest in the NHS and social care: we need to keep investing in these essential and treasured public services — with more medical staff and less waste.’

Zak Jakubowski |Reporter, Accountancy Daily [2019-2021]

Zak Jakubowski was a reporter at Accountancy Daily, published by ...

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