50p Rate to Raise £12.6bn in Five Years, Treasury Figures Show

Thursday, September 8, 2011 Print Email

THE 50p TOP rate of tax will raise an additional £12.6bn over five years, according to the Treasury's own figures.

By 2015/16, the tax rate on people earning above £150,000 a year will bring in a projected £3.2bn a year more than if the rate stayed at 40%. In all, the rate will have raised at additional £12.6bn over the five years since it was introduced. The figures also show that it will raise an additional £5.3bn compared with a 45% rate.

The figures were calculated in November 2010 and were revealed following a parliamentary question by Lord Ashcroft.

Chancellor George Osborne (pictured) has previously claimed that the tax rate was a temporary measure. However, he has indicated a final decision will be made following a review by HM Revenue & Customs to be completed after the self-assessment deadline in January 2012.

A letter to the Financial Times from 20 leading economists, published yesterday, called on the government to scrap the top rate of tax, claiming it was harming economic growth.

Login to ReadyRatios


Have you forgotten your password?

Are you a new user?

Login As
You can log in if you are registered at one of these services: