Coalition proposals for tax, trees and train travel

Some interesting proposals announced by Mr Cameron and Mr Clegg yesterday in their “programme for government” 

Among the proposals are

  • Increase the tax free allowance from the current £6,475 with a “substantial increase” in the allowance from April 2011.
  • Moving the tax free allowance to £10,000 will be a “long term policy objective”
  • Capital Gains Tax will be applied at rates “similar or close to those applied to income” – but no clear indication of when this will happen. Fingers crossed it is April 2011 to tie in with the increase in the tax free personal allowance?
  • Air tax will change from a per traveller to a per plane basis – (bet Mr O’Leary at RyanAir finds a way to pass that on)
  • Tax credits will reduce for higher earners
  • IR35 will be reviewed and replaced with simpler measures – but ones that will not reduce the tax liabilities

Elsewhere you may have missed

  • “We are committed to fair pricing for rail travel” (but who would committ to “unfair” pricing?)
  • A national tree planting campaign will be launched
  • Housing Information Packs will be scrapped
  • 3rd runway at Heathrow will be scrapped (but what about the 2nd runway at Edinburgh?)

All in all it is good to see the government thinking on their feet – but the real test will come when the talking stops and the action starts.

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