Labour has announced a Ten Point Plan to Tackle Tax Avoidance and a £7.5 billion target to reduce avoidance and evasion. We will do this because we know that Britain will only succeed when working people succeed, which means everyone playing by the same rules.
We have seen this week that the Tories refuse to act on tax avoidance:
- They have been defending the 200 year-old non-dom rules which allow some wealthy people to avoid paying UK tax.
- They have been refusing to close the loopholes which allow hedge funds to avoid tax.
Labour is giving warning to the Treasury and HMRC that on the first day of a Labour government there must be:
- A draft Finance Bill which is an Anti-Tax Avoidance Bill and delivers the legislation needed for the measures set out in Labour’s ten point plan to tackle tax avoidance and evasion.
- A report from HMRC on all current measures and processes for tackling tax avoidance and evasion, so that Labour’s review of culture and practices at HMRC can make an immediate start.
The tax avoidance plan includes plans to:
- Abolish non dom status
- Tackle hedge funds avoiding stamp duty
- Rewrite the rules used by those in private equity firms to pay Capital Gains Tax rather than higher Income tax
- Clamp down on overseas territories that are tax havens
The tax avoidance measures we have set out will mean Labour can fully fund our NHS Time to Care Fund, abolish the bedroom tax and cut tuition fees to £6,000. Additional revenues raised over and above this will be used to help get the deficit down.