Lib Dems ready to scrap 50p tax rate

THE LIBERAL Democrats are ready to scrap the 50 pence top rate of income tax in return for a new tax on expensive homes.

The Lib Dems have previously opposed scrapping the 50p tax rate, but Nick Clegg, the party leader, has told Chancellor George Osborne that he is willing to negotiate over the top rate, the Sunday Times reported.

Clegg’s shift will increase pressure on David Cameron and George Osbrone to announce a timetable for axing or reducing the 50p rate, which they have always described as a “temporary measure”.

One option for a property tax is bracketing homes according to value and imposing a fixed rate for each bracket, with those owning properties worth tens of millions of pounds facing the highest fees, the Sunday Times reported.

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