Tax policy comparison: Labour and Conservative Parties

The table below summarises the key tax policies contained in the Labour and Conservative Party manifestos. It may not include every measure, so for more insights please visit our Election hub.

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Liz Hudson
Published: 14 Jun 2024 Updated: 14 Jun 2024
Business tax Personal tax Tax

Where possible, we have indicated, to the best of our knowledge and based on the information currently available, whether each change represents:

A tax increase (in red)
No change (in orange)
A tax cut (in green)
Additional commentary (in black)

Corporate tax



No increase to corporation tax rates

Cap corporation tax at 25%

Extension of full expensing to include leasing, as already stated in the Spring Budget 2024

Retain a permanent full expensing system for capital investment and the annual allowance for small businesses

Maintain tax reliefs on research & development

Give firms greater clarity on what qualifies for allowances

Ensure creative sector tax incentives remain competitive

Publish a roadmap for business taxation for the next Parliament

Support implementation of the OECD global minimum rate of corporate taxation

Back international efforts to make sure multinational tech companies pay their fair share of tax

Environmental tax


Keep the windfall tax on oil and gas companies (energy profits levy) until 2028/29, unless energy prices drop ‘back to normal’ sooner

Extend the sunset clause in the energy profits levy (windfall tax) until the end of the next Parliament

Maintain investment allowances for these oil and gas companies

Increase the rate of the energy profits levy by 3%

No new green levies or charges, including no frequent flyer levy

Remove the investment allowances from the energy profits levy

Ensure that green levies on household bills are lower

Business rates


Gradual increase of the business rate multiplier on distribution warehouses that support online shopping

Replace the business rate system in England, to raise the same revenue but in a fairer way

End business rates relief for private schools



Make the increased threshold for stamp duty land tax for first time buyers permanent

Increase the rate of stamp duty land tax paid by non-UK residents purchasing residential property from 2% to 3%

No increase to the rates or levels of stamp duty land tax

Income tax


No increase to income tax rates

No increases to the basic, higher, or additional rates of income tax

Introduce a new age-related personal allowance for those over state pension age which rises by the higher of inflation, earnings, or 2.5% to ensure the state pension remains below the tax-free threshold (from April 2025) The “plus” in the “Triple Lock Plus”.

Abolish non-domicile status and replace it with a new scheme for people in the country for a short period

Maintain the 25% tax free lump sum for pension withdrawals

Tax all carried interest as income rather than as a capital gain

Keep tax relief for pension contributions at marginal rate

National insurance


Cut the main rate of national insurance from 8% to 6% for employee’s earnings between £12,570 and £50,270 (to 7% effective April 2025 and 6% effective April 2027)

No increase to national insurance

Abolish the main rate of national insurance (class 4) for the self-employed charged on earnings between £12,570 and £50,270 (to 5% in April 2025, 4% in April 2026, 3% in April 2027, 2% in April 2028, full abolition April 2029)

Abolish “double tax on work"
altogether when financial conditions allow
Will not extend national insurance to employer pension contributions

Inheritance tax


Retain agricultural property relief and business property relief

End the use of offshore trusts to ‘avoid’ inheritance tax

Capital gains tax


No increase to capital gains tax

Retention of business asset disposal relief

Retention of private residence relief

Introduction of a two-year temporary capital gains tax relief for landlords selling to existing tenants



No increase to VAT rates

No increases to VAT rates

Keep the VAT threshold under review and look at options to smooth the cliff edge at £90,000

End the VAT exemption for private schools


Tackle avoidance and evasion by hiring additional HMRC staff, investing in labour-saving technology such as AI, and focusing on problem issues like umbrella companies and regulation of the tax advice marketTackle avoidance by modernising HMRC and changing the law. Registration and reporting requirements will be increased, HMRC’s powers strengthened, additional capacity built within HMRC and new technology invested in

Renewed focus on tax avoidance by large businesses and the wealthy

Other measures

Keep tax incentive schemes including the enterprise investment scheme, seed enterprise investment scheme, and venture capital trusts

Committed to one major fiscal event a year, giving families and businesses due warning of tax and spending policies. A forecast from the OBR will accompany it
Change the high-income child benefit charge to a household system from April 2026, as announced at Spring Budget 2024, with the threshold for withdrawal set at £120,000 and full withdrawal from £160,000 (from April 2026)

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By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

Tax legislation

Tax legislation is that prevailing at the time, is subject to change without notice and depends on individual circumstances. You should always seek appropriate tax advice before making decisions. HMRC Tax Year 2024/25.