JEREMY CORBYN announced a huge £ 83 billion bumper spending spree in the Labor Party’s general election manifesto but has caused fury by unleashing 12 huge tax rises on Britons to pay for it.
Jeremy Corbyn‘s tax assault includes a second homes tax, reversinginheritance taxcuts made by the Conservative Party, a transaction tax on bankers, VAT on private schools and a windfall tax on oil companies. TheLabor Partyleader’s huge array of levies aims to raise the £ 82. 9billion needed to fund these tax hikes in the event of the party coming into power following the general election on December 12. But the Tories have now upped the stakes in the war of words as the battle lines are drawn ahead of next week’s national poll.
It has posted a tweet listing ‘Labor’s 12 taxes of Christmas’ in reference to the famous festive song.
They are listed as higher inheritance tax, marriage tax, higher petrol tax, stealth heating tax, pensions tax, small business tax, drivers tax, home tax, movers tax, gifts tax, income tax and holiday tax.
One of the standout policies is the removal of the inheritance tax relief, which enables people to leave their homes to their family tax-free.
Currently, a person leaving their home to a direct descendent can pass on an additional £ 150, 00 0 tax-free on top of The £ 325, 00 0 standard allowance each person is entitled to.
The Labor Party is planning the removal of inheritance tax relief(Image: GETTY)
Jeremy Corbyn revealed an £ 83 billion spending spree in the Labor Party manifesto(Image: PA)
Married couples and civil partners are also able to benefit from their partner’s allowance if the latter dies.
This means a couple could pass on £ 300, 00 0 worth of property without incurring tax.
Under the Tories, the amount of property wealth to be passed on without incurring a tax hike is due to increase to £ 175, 00 0 next year and £ 350, 00 0 for a couple.
But this would be under serious threat if Jeremy Corbyn and Labor win next week’s general election.
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The Labor leader has drawn the battle lines ahead of next week’s general election(Image: PA)
Rachael Griffin of wealth manager Quilter said: “While convoluted, the rationale behind it was that people wanted to pass their homes onto the next generations: scrapping the allowance and not replacing it with anything else will stem the flow of wealth between the generations.”
Inheritance tax raised £ 5.3billion for the Treasury in 2018 but if next year proposed increased allowance is abolished, people will see the inheritance tax their families have to pay surge by up to £ 14, 00 0, according to calculations by accountancy firm Black Rothenberg.
The calculations state a person without unused allowance from a deceased spouse or civil partner would lose out by £ 70, 00 0.
In their general election manifesto, Labor cited reports the Treasury deemed the family home allowance a benefit that predominantly favors high income and wealthier households.
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Labor is planning its path to 10 Downing Street(Image: GETTY)
John McDonnell has announced several Labor Party policies(Image: GETTY)
The Government has estimated the cost of providing the tax relief will surge to £ (million by) – with the huge savings helping t o pay for Labor’s massive spending spree.
Labor’s spending plans have been roundly lambasted by critics , who warned they would pile millions of pounds of tax hikes and debt onto Britons.
Matthew Lesh, head of research at the Adam Smith Institute, told Express.co.uk: “Labor is trying to bribe voters with a shopping list of rotten promises.”
Dinesh Dhamija, Liberal Democrat MEP for London and the British Indian entrepreneur best known for founding online travel agency Ebookers, said: “The plans are hogwash – a mirage to put in front of people. Promising free prescriptions and free care for the over 65 s for example is a bribe for a particular sector of votes. ”
The Labor Party’s huge £ 83 billion tax plan(Image: EXPRESS
The TaxPayers’ Alliance issued a huge warning over Labor’s “tax grab”, advising Britons to prepare for “eye-watering tax hikes” if Mr Corbyn and Labor win the general election.
Political Director James Roberts told Express.co.uk: “Being threatened with a £ 1.2trillion tax grab shows the election spending spree has gone a step too far.
“Taxing an extra £ 2, 400 per person every year could mean a whole host of eye-watering tax hikes on everything from your monthly payslip, to moving home, flying away for a holiday or driving to work. ”
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