JCrypto

Restore Britain have published a 'fully costed' economic plan detailing £155.7bn of tax cuts in what seems like the most revolutionary tax plan of our lifetime: - Personal allowance up from £12,570 to £16,000. - 20% band extended from £50,270 to £100,000. - Personal Allowance restored to everyone, so the 60% trap between £100,000 and £125,140 is no longer. - Stamp duty abolished. - Inheritance tax abolished. - Capital Gains Tax annual exemption up from £3,000 to £20,000. - Corporation tax 0% on the first £50,000 of profit, 19% above it. - VAT down to 18%, registration threshold up from £90,000 to £150,000. - Insurance premium tax, air passenger duty, emissions trading and the climate change levy, all gone. What the headlines would mean for you: Earn between £12,570 and £16,000 - Your entire current tax bill is wiped out Earn £16,000 to £50,270? You save £686 a year. £57 a month. Earn £75k: You save £5,632 a year. £469 a month. Earn £100k: You save £10,632 a year. £886 a month. Earn £125,140 or more, you save £15,660. £1,305 a month. Now the parts you only find in the detail: That £686 is flat... Exactly £686 whether you're on £17,000 or £49,000, because it comes from the allowance and not the rate. The same happens with the cap at £15,660, so someone on £2m gets the same tax break as someone on £125,140. This is probably going to be better received than the other parts. National Insurance isn't touched. It stays 8% up to £50,270 and 2% above. Extending the 20% band to £100k means the combined tax rate is 28% up to £50,270, then drops to 22% until £100,000. This means a £45k earner keeps 72p of their next pound whilst the £95k earner keeps 78p, an interesting choice, which I can imagine won't go down well once people realise it. The savings set against all this are £178bn 'by 2031-32', which is their own £35bn a year figure multiplied across a Parliament to offset the £155.7bn in cuts. It looks matched... It isn't. Four of the ten lines in their tax table are identical, to the decimal point, to a single year of receipts in their own Figure 15. The cuts are annual. So there's really a £120.7bn per year hole in this 'costed' plan. Aspirational? Definitely. Vote winning? Most certainly. Realistic? I'm not convinced.