To the surprise of virtually every pundit and pollster the Conservatives will form the Government with an overall majority. Here is a summary of the Conservatives manifesto.
By the end of 2020-21 (i.e the end of the forthcoming Parliament) the Personal Allowance would rise to £12,500 and the higher rate tax threshold to £50,000.
From 2016-17 a Personal Savings Allowance would give basic rate tax payers an allowance of £1,000 for savings income and higher rate tax payers an allowance of £500.
The annual allowance for pension contributions for those with incomes over £150,000 to be reduced by £1 for each £2 of excess income, down to a minimum allowance of £10,000 at incomes of £210,000 and above.
The Lifetime Allowance for pensions is set to fall to £1m from 2016-17.
Main Residence IHT Allowance
A main residence IHT exemption of £175,000, transferrable between spouses and phased out at the rate of £1 for each £2 of estate value over £2m (so gone by £2.35m). The effect of this for a couple is to give a total IHT exemption of up to £1m, assuming they own a home worth at least £350,000.
The Conservatives said there would be a further tax on non-domiciled but no numbers were given.
Anti-evasion and Anti-avoidance
Pledge to raise £5billion by 2017-18 from anti-evasion and avoidance measures.
Annual Investment Allowance
Promise to set a 'new and significantly higher, permanent level for the Annual Investment Allowance. This is currently due to fall from £500,000 to £25,000 in 2016.
Overall Reaction And Prospects Going Forward
The investment market's initial reaction has been to jump on the unexpected result. However, the Conservative Government will not be in a position to make tax giveaways: the deficit is set to come in at £75billion in the current year and the Chancellor's aim is to turn this into a surplus by 2018-19. By that time total Government borrowing is still projected to be around 75% of GDP.