2013 earmarked for cutting 50% rate

SPECULATION this morning has identified 2013 as the most likely time for the 50% tax rate to be “lowered”.

According to the Daily Telegraph the chancellor has pencilled in the Budget two years from now for cutting the tax.

The tax, introduced under Alastair Darling in the Budget 2009, is under review because it is believed to raise very little in tax revenues.

Last April, when it came into force, the Institute of Directors said they believed it would raise little tax in the short term and would lead to lower overall tax revenues in the longer term.

The tax is payable on income over £150,000 and prompted speculation that it would lead many high earners to leave the country.

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