Fewer top taxpayers due to recession

One million people will no longer earn enough to fall into the top 40 per
cent tax bracket by next year, according to HM Revenue and Customs figures
reported in the Daily Telegraph.

The financial crisis has been marked by massive job losses in white collar
industries such as finance and property, and executives have had their bonuses

HMRC is forecasting the number of taxpayers paying the top rate to shrink by
one million people to 2.9 million in 2009-10.

The amount of income tax paid by the group will slide £15.9 billion in that
time, from £91 billion to £75.1 billion.

Chancellor Alistair Darling plans to raise the top rate tax threshold to 50
per cent next year.

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