It’s party conference season, with the Liberal Democrats taking centre stage this week and making various pre-election promises.
As the junior member of the current coalition government, investors will want to know what Nick, Vince and co have to say as some of their ideas (the less wacky ones) might become policy in the future, either with Conservative or Labour future coalition partners.
Deputy prime minster Nick Clegg has got the ball rolling with a promise that those paying the minimum wage will not pay any income tax.
This announcement continues to make ‘tax fairness’ the ‘signature tune’ of the Lib Dems.
One of the key aims of the party when negotiating the coalition agreement was to see the income tax personal allowance raised to at least £10,000.
The income tax personal allowance currently stands at £9,440 for the 2013/14 tax year and is scheduled to rise to £10,000 in April 2014.
At the same time, the basic rate income tax threshold will be reduced to £31,865, which effectively means that anyone earning more than this will not benefit from the higher personal allowance.
Those born before 5th April 1948 currently receive an even higher age-related personal allowance, although this is being gradually phased out and brought into line with the personal allowance for those under age 65.
