TaxPersonal Tax50p tax rate kicks off today

50p tax rate kicks off today

High earners will find themselves taxed at 50p on every pound they make over the £150,000 threshold

The 50p top rate of tax comes into force from today.

Britain’s best paid workers will have to give up 50p in the pound for any
income over a threshold of £150,000.

The introduction of the new rate forms
part
of government moves to slash the UK’s spending deficit,
which stands at
close to £170bn.

The banking industry suffered a double whammy with the payroll tax on
bonuses, however the feared exodus of high-net worth individuals in the wake of
these changes did not materialise.

A court ruling on a residency dispute involving tycoon Robert Gaines-Cooper
which saw judges side with HMRevenue & Customs
put
doubts in the minds of those considering a move to another tax jurisdiction,
advisers said
.

The Treasury is now considering
a
statutory residence test
, another development which may have also deterred
rich individuals wanting to continue working in London from relocating overseas.

Further reading:

Budget
2010: Tax rises worth £19bn planned

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