Top tax rate tipped to rise to 45%
Top earners face hike in taxes to offset Treasury's £120m borrowning bill next year
Britain’s biggest earners face higher taxes as Prime Minister Gordon Brown
and Chancellor Alistair Darling attempt to reduce a borrowing bill tipped to
reach close to £120bn next year.
The chancellor is expected to announce a new top rate of tax of 45% which
will apply to those earning more than £150,000, The Times reports.
The new rate – which probably will come into effect immediately after the
next general election – is expected to be among the deferred tax rises announced
today to show the
Treasury
intends to rebalance the books.
The higher rate is said to affect almost 300,000 income earners and raise
about £1.2bn. Borrowing is forecast to rise to record levels next year after
Darling today in his pre-budget report cuts 15%, lowers income tax by £120 for
those on the basic rate and postpones planned rises in vehicle duty and
corporation.
Further reading:
Brown promises tax cuts, help to small business
Grant Thornton predicts PBR measures