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