Tories shift higher rate income tax threshold to £40,800

The first of eight consultation papers has been published today by Shadow Chancellor Oliver Letwin to look at ways of simplifying the UK tax regime, and this time looks specifically at reforming income tax and national insurance contributions if elected into government at the general election in 2005. Most significant of the Tory’s five main proposals in this 10-page PDF document is a proposal to “restore the basic rate limit to the ratio of full-time earnings (1.39)” held until 1997, so top rate income tax is paid only by individuals earnings more than £40,764 a year. Additional sugg...