TaxAdministrationTax rate hike on top incomes bucks global trend

Tax rate hike on top incomes bucks global trend

The rise in tax on top incomes bucks the global trend, KPMG survey shows

The tax rise on top personal incomes announced in the
pre-budget
report
yesterday would buck the global trend, a survey by
KPMG
International
reveals.

The survey has found top rate personal income tax rates around the world have
fallen by an average of 2.5 percentage points in the past six years, as
governments try to balance their need for revenue with the impact of increasing
global labor mobility.

However, a top rate of 45% on earnings of more than £150,000 would still be
below the top rate of key competitors such as Germany (45% on €250,000) and the
US, where top rate of up to 45% starts at $US357,700.

‘The Treasury clearly needs to find money from somewhere but the UK has to
remain competitive at a time when the workforce is becoming more mobile. Given
the recent changes to non-domiciled taxation this is a further potential
challenge to London’s position as a leading global financial centre,’ David
Kilshaw of KPMG in the UK, said.

Further reading:

PBR 08: 45% rate for income over £150,000

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