Lib Dem tax proposals condemned

The LibDems unveiled the proposal to scrap higher-rate tax relief on pensions this morning as part of a wide ranging set of reforms which would also see the capital gains tax allowance slashed from £8,800 to a mere £1000. The party says by effectively scrapping both allowances it can abolish the existing 10p starting rate for income tax, taking more than two million people out of tax altogether. It also says the reforms would enable it to lower the basic rate of income tax by 2p. One small crumb of comfort for those on higher salaries is the party proposes to raise the threshold for the ...