Taxation

Question 1

First Term

Answer 1

Changed tax system to tackle inflation
→Also hoped lower taxes would incentivise people to work hard
→Raised VAT (an indirect tax) from 8% to 15%
→Lowered income tax (direct tax)

Question 2

1980s

Answer 2

Further cut income and corporation tax (direct tax)

Question 3

1988 Budget

Answer 3

Tax cuts of £4b
Four of the five highest tax rates cut
→ wealthiest people saw their tax bills cut by a 1/3