ANY CUT in the top rate of income tax has been dismissed out of hand by the Liberal Deomcrats’ most senior Treasury minister.
Danny Alexander claimed the current 45% rate was “the right place to be”, and moves to slash the rate further would be made “over my dead body”.
The Liberal Democrats had initially opposed the cut from 50% to 45%, although the party leadership was agreed in return for the bigger than scheduled rise in the amount people can earn before paying income tax.
No cut to the rate has yet been put forward, but senior Conservatives, including mayor of London Boris Johnson, have expressed a desire to lower the rate closer to 40%.
“Sooner or later there will have to be a new Conservative manifesto and I can’t believe we are going to go into an election on a manifesto to keep our tax rates higher than our competitor countries.”
Johnson was responding to an interview given by chief secretary to the Treasury Alexander to the Mirror, in which he said: “I wouldn’t go to cutting below 45%. I would say that would happen over my dead body. It’s clearer and simpler and better to say we are going to stick where we are. We have the 45p rate and that’s the right place to be.”
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward