The surprise election result has removed some potential tax
increases, but a variety of delayed tax measures and manifesto
promises remain.
The Conservatives' unexpected victory on 7 May means that
the threat of a mansion tax on properties valued at over £2m
has disappeared and a return to a 50% additional rate is off the
agenda. However, as a percentage of economic output, the government
deficit is larger than Greece's according to the IMF, so any
tax cuts will need to be balanced by increases elsewhere and/or
further expenditure cuts.
There is already one subtle tax increase left over from the
March Budget which is due to be legislated for and take effect from
April 2016. The effective tax-efficient maximum value of pension
benefits, the standard lifetime allowance, may drop by 20% to
£1m. In addition, the Conservatives' manifesto announced
another pension tax change with a phased reduction in the annual
allowance (broadly the maximum tax relieved total
