Latest tax and investment news
50% tax rate 'will not close UK's fiscal deficit'
The yield from the government's 50 per cent tax rate for higher earners, which is due to come into effect from April, will not have as great an impact as Treasury ministers have hoped, according to the Chartered Institute of Taxation (CIoT).
It follows comments from city minister Lord Myners, who said that he expects high earners to try to dodge the impending tax rate, causing the Treasury to scale down the anticipated sum of tax that is reached.
John Whiting, tax policy director for the CIoT, said that the Institute for Fiscal Studies has already claimed that the yield will be "effectively nil" and the 50 per cent tax rate is unlikely to solve the UK's fiscal deficit by itself.
"Some will look to tax schemes that turn income into capital, though these are likely to be high risk as HMRC will be policing such arrangements very carefully," he went on to say.
"Others will be contemplating moving abroad or not coming to the UK in the first place."
Posted by Fiona Beck.
For More Information
For more information about our services please contact us on the number provided below. Alternatively, fill out this form, indicating your area of interest, and one of our partners will contact you. If in any doubt, we offer a free, no obligation meeting to discuss your requirements.
For further information please email us at mail[at]atcsolutions.com or call:
ATC Solutions takes your privacy very seriously and any information you provide will only be used by us. We do not pass on information to any third parties unless you expressly give us permission and only then in relation to your specific enquiry.
