To compare the tax policies of the other leading political parties with the Liberal Democrat's plans, use our new UK Election 2024 Tax Calculator.
The headline pledge of the Lib Dems is to revolutionise the NHS with better access (within 7 days for a GP, or 24 hrs in emergencies) - to be achieved by rapidly increasing staffing and modernising IT. This is just an overview of plans that would impact every aspect of healthcare including dentistry. Considering the NHS is already Europe's largest employer, how will the Lib Dems fund their plans?
The manifesto states a need to increase the minimum rate of corporation tax to 21 percent. At the moment there is a 19 percent corporation tax rate for small businesses and this rises to 25 percent for large businesses, with a marginal rate in-between. Additionally, giants such as social media firms will see the Digital Services tax rise from 2 percent to 6 percent.
IR35 and the loan charge are highly contentious schemes that need review and the Lib Dems state they will end the loan charge and review IR35 to treat the self-employed in a fairer manner.
When it comes to personal taxation the Lib Dems are going to continue with the current Conservative government's strategy of freezing income tax thresholds until 2028. This includes a freeze on the current tax-free personal allowance. It is well-known now that the freezing of tax thresholds and allowances in this manner is a stealth tax increase, which works by pulling people into higher tax brackets or when people pay more tax each year through salary inflation. This 'fiscal drag' has been a Tory strategy for a number of years now.
There is no plan to reverse increases in personal taxes but there are plans to increase taxes for 'big banks' and create a one-off windfall tax on the oil and gas sector. The bank tax would see the bank surcharge and levy return to 2016 levels. A 'sewage tax' on water companies will also come into force.
People working in the 'gig economy' could see their tax and NIC treatment change under the Lib Dems, with plans for a fairer treatment.
Capital gains tax has seen a steady reduction in the annual exempt allowance people are able to use before paying taxes on any gains. The Lib Dems state they will make the richest 0.1 percent pay more by reforming CGT - impacting less than 50,000 people. Additionally, a 4 percent tax will be introduced on share buyback schemes of FTSE-100 companies.
Another continuation of existing policy is the pledge to increase investment in HMRC to tackle tax avoidance as a way to balance the UK's tax gap. The difference with the Lib Dems is to invest a much larger £1 billion in the Taxman - raised a potential £7 billion for the Treasury.
The Conservative government recently started to make electric vehicles come more into line with combustion vehicles by reducing the tax benefits previously possible - increasing BIK rates and VED. The Lib Dems state they will make it cheaper and easier to switch to EV's (by 2030), and this could see those tax benefits return. The plug-in car grant will be also reintroduced.
You can read the full Liberal Democrat manifesto on the party's official website.