Additional rate tax band to go under review May 2011
Posted date: 27 April 2011
As announced in the Budget, the 50p tax rate is expected to be abolished once a review of how much money the rate generates is complete.
It is anticipated that the tax will be removed in the 2013 Budget. The review will be undertaken by HM Revenue & Customs and will commence once the self-assessment tax returns have been received next January. However, the information given on self-assessments will not be all encompassing and may not give a full picture.
George Osborne, Chancellor of the Exchequer, first revealed his intentions to abolish the rate during his recent Budget speech where he commented that high levels of personal tax “crush enterprise, undermine aspiration and often undermine tax revenues as people avoid them”.
The higher rate, which was introduced in April 2010, was designed to raise an additional £2.4 billion a year from the 300,000 highest earners. The 50p tax rate applies to those who earn more than £150,000 a year and was originally introduced by the Labour Government.
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- May 2011
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