Coalition battles out tax plans

In a bid to form a workable coalition, the Conservative and Liberal Democrat parties have had to sacrifice some of their tax plans.

Some pledges from the parties' manifestoes, however, will become part of the joint deal.

One major feature of the Lib Dem tax plans was to raise the tax-free threshold to £10,000 on all earnings.

This has made it through the deal, while the Conservative proposals for a marriage tax policy, which gives £150 to married couples, has also been passed through.

However, the Tories have had to amend their plans to scrap the national insurance rise, or the 'tax on jobs', as David Cameron called it.

Mr Cameron has also had to agree not to pledge to raise the inheritance tax threshold to £1 million.

The uncertainty over what tax policies will remain and which ones will go could lead some Brits to look for advice on how to make the best tax savings.

Written by Christopher Evans

Published on: May 12, 2010

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