Election 2019 – what will the manifesto pledges mean for your finances?

As the three main political parties battle it out for your votes in the 12 December election, we ask what their pledges could mean for your finances, whether you’re an investor, homeowner, tenant – or a combination.

Labour would increase income tax for those earning more than £80,000 – a rise to 45p in the £1, affecting the top 20% of earners. They would also introduce a new 50% rate for those earning more than £125,000.

Under Labour, corporation tax cuts made since 2010 would be reversed, meaning a rise from 19% to 26%. A 5% increase in pay would be awarded for public sector workers. And a living wage of £10 an hour for all workers over the age of 15 would be introduced. Capital gains tax (CGT) and tax on dividends would be brought into line with income tax rates.

The Liberal Democrats would also scrap CGT and tax gains in the same way as income. Income tax would increase by 1p to fund social care and the NHS.

The Conservatives would raise the national insurance threshold to £9,500, with an ‘ambition’ of further raising it to £12,500. There would be no increase in the rates of income tax, national insurance or VAT, but Boris Johnson has shelved the proposal, made during his leadership bid, to increase the higher rate tax threshold.

Labour wants to reform the Help to Buy scheme, increasing its focus on first-time buyers on ordinary incomes.

The conservatives will introduce ‘lifetime’ fixed rate mortgages for renters with a 5% deposit.  

The Lib Dems would give local authorities powers to increase council taxes by up to 500% on second homes to free up more vacant properties.

Both Labour and the Conservatives want to ban the sale of new leasehold homes. Labour would allow existing leaseholders to buy their freehold ‘at a price they can afford’.

All three parties would add a levy for overseas buyers purchasing UK property.  

For renters, the Conservatives want to introduce a ‘lifetime deposit’, which would enable tenants to transfer their deposit from one property to another.

The Liberal Democrats would introduce a Help to Rent scheme, providing government-backed tenancy deposit loans for first-time renters under 30.  

Labour wants to introduce rent controls, capped by inflation and would launch its own national licensing scheme.

All three parties have plans to end no-fault evictions.

Read a quick guide to each party’s pledges in The Independent.