Coalition agreement: Income tax NICs and IHT
The parties agreed that the income tax personal allowance should be increased to help lower and middle-income earners. Increasing the allowance to £10 000 a Liberal Democrat manifesto pledge was now an agreed 'longer term policy objective' and the parties agreed to make 'real terms steps each year' towards that objective. This tax cut should take priority over others including inheritance tax cuts they said.
The Conservatives had pledged to increase the inheritance tax nil rate threshold to £1 million 'to help millions of people who aspire to pass something on to their children'. The Liberal Democrats were reported to have dropped their 'mansion tax' proposal in the post-election talks.
An increase in employer NIC thresholds proposed by the Conservatives would go ahead 'in order to stop Labour's jobs tax' the parties said. Reports indicated that...
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