Higher-rate taxpayers with an income of less than £40,800 could be reclassified as basic rate income taxpayers after the general election, under proposals unveiled by the Conservative Party.
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...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
