The UK Chancellor of the Exchequer, today, announced the government’s mid-term economic forecasts and their tax and spending plans.
Amongst the measures, he announced a 50% rate of tax on incomes above £150,000.
…However, as the economy recovers and wages start to grow again, it is right that we take additional steps.
I believe that it is fair that those who have gained the most should contribute more.
Only those with incomes over £100,000 a year – or 2 per cent of the population – will be affected.
In November, I announced a new rate of income tax of 45 per cent on incomes above £150,000 – the top one per cent of taxpayers.
In order to help pay for additional support for people now, I have decided that the new rate will be 50 per cent, and will come in from next April – a year earlier.
In November, I also announced that I was reducing personal allowances for the very highest earners with incomes over £100,000.
These allowances are worth twice as much as those of basic-rate taxpayers.
I have now decided to fully withdraw the benefit of that allowance for those with incomes over £100,000 from next April.
Mr Deputy Speaker, these measures are necessary to build our recovery and secure our country’s economic future.
