A leading UK think tank has labelled the Treasury’s new 50% tax rate as
‘unfair, complex, inefficient and damaging.’
The Centre for Policy Studies says the 50% rate, which the Treasury estimates
will raise an extra £2.4bn, is minimal compared to the £175bn in government
borrowing requirements, according to
The group has said some of Britain’s wealthiest taxpayers are now likely to
turn their back on the country.
Corin Taylor, senior policy adviser at the Centre for Policy Studies, said
the new rate is detrimental to the entrepreneurs who are instrumental in helping
to bring the UK out of the recession.
‘Green shoots of recovery will wither and die if business leaders leave or
choose not to come to this country because of the higher tax rate,’ he said.
Richard Le Tocq, head of Locate Guernsey, discusses the chancellor’s approach to high net worth individuals, and why relocation is increasingly attractive to HNWIs
The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer
The SME community voices concern about the chancellor's measures in the Spring Budget