Lib Dems Unveil 'Radical' UK Tax Plan

by Robert Lee, Tax-News.com, London

12 April 2010

The UK Liberal Democrat Party has proposed raising the income tax threshold to GBP10,000 as part of a tax plan described by the party leadership as "the biggest tax switch in generations."

The Lib Dems, the third-largest party in the House of Commons, claim that their plan would result in a GBP700 per year tax cut for the average working taxpayer, while taking almost 4 million people on low incomes out of the income tax net altogether.

The party would pay for this tax cut by clamping down on tax avoidance, ensuring that the wealthy pay more tax, imposing a ‘mansion tax’ on homes worth more than GBP2m and environmental taxes on the aviation sector.

“Under Labour the tax system is complex, unwieldy and most of all unfair," said Liberal Democrat Leader Nick Clegg. “This has to change. Liberal Democrats will rebalance our tax system to make it fair once and for all."

“We are proposing the biggest tax switch in generations," Clegg added. "A radical overhaul to make sure those at the top pay their fair share in order to put money back in the pockets of people who need it."

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