Labour will end the VAT exemption and business rates reliefs for private schools.

Non-domiciled tax status

Labour will abolish the non-domiciled tax status, which exempts certain UK residents whose permanent home for tax purposes is outside of the UK, from paying tax on money earned outside of the UK. Labour proposes to introduce a more modern regime targeted at individuals who are in the country for a short period of time.

The Labour Party plans to increase the rate of stamp duty land tax on purchases of residential property by non-UK residents by 1%.

Labour proposes ending the use of offshore trusts to avoid the payment of inheritance tax.

HMRC and tax avoidance

Labour will look to modernise HMRC and change legislation to tackle tax avoidance.

Labour will increase tax registration and reporting requirements and strengthen HMRC’s powers. They will invest in new technology and build capacity within HMRC.

Labour plans to retain the triple lock for the state pension as well as adopt reforms to workplace pensions to deliver better outcomes for UK savers and pensioners.

Pension outcomes and investment

Labour will review pensions to consider what further steps are needed to improve pension outcomes and increase investment in UK markets.

Labour plans to partner with banks and building societies to provide further private finance to accelerate home upgrades and low carbon heating.

Labour proposes giving private tenants of residential properties more protection. This will be welcomed by renters but we are likely to see landlords leaving the rental market, leading to a decrease in supply and higher rents.

Focus on: private wealth

05.07.24

Mike Westbrook

Read below for details and insight into the newly-elected Labour Party's proposed key policies that will affect the private wealth sector.

A key issue for private wealth will be what tax reforms a Labour government will introduce and when. They have been quite clear in their manifesto that they will not increase taxes on working people, pledging that they will not increase income tax, National Insurance or VAT.

However, the manifesto was largely silent on capital gains tax and inheritance tax, raising speculation that changes on these taxes may come. It seems likely however that they will implement the Conservatives Party's proposals to change the tax rules as they affect non-domiciled individuals and potentially impose further-reaching restrictions. Labour’s pledges on the growth agenda and housing planning reform could present opportunities for private investors and landowners.

Explore the Labour Party's key policies on private wealth

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Comment from Mike Westbrook, trusts and estates partner

“The first few days and weeks of a new Labour government will be closely watched. Labour has gone to great lengths over the recent months not to ‘scare the horses’ and to reassure both voters and the markets that they will be a safe pair of hands. However, they will need to deliver on some big, albeit broad, promises for change and taxation policy will be key to this. Changes to VAT on private school fees, the non-domicile tax regime and an increase on stamp duty land tax for non-residents seem likely, but Labour also has left scope for changes to pension tax reliefs and capital gains tax, with a wider review of key tax reliefs and inheritance tax a possibility.”