Economists query impact of 45p top tax rate

clock

The Treasury raised an extra £1.3bn from income tax in the first month since the introduction of the 45p top rate, according to the latest figures.

The Treasury said it took £11.5bn in income tax in April, a 10% increase on the same month last year, reports the Telegraph. At Budget 2012, the Chancellor George Osborne confirmed the 50% top rate of income tax would be cut by 5p in the pound from April 2013. The coalition claimed the 50p rate introduced by Gordon Brown had not sufficiently boosted income tax receipts. Labour has consistently criticised the move, claiming it could save millionaires an average of £100,000. Last month, Ed Balls said the government had "no evidence" to support its claim that the 50p rate was not rais...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Advisers see higher client demand as tax changes and rumours cause confusion

Advisers see higher client demand as tax changes and rumours cause confusion

See opportunity to provide ‘much-needed’ clarity

Isabel Baxter
clock 23 April 2025 • 2 min read
HMRC to raise £110m per year by cutting IHT relief on AIM shares

HMRC to raise £110m per year by cutting IHT relief on AIM shares

Will make gifting a more attractive option to investors

Isabel Baxter
clock 22 April 2025 • 2 min read
Advisers worry about pension and IHT changes as clients feel impact

Advisers worry about pension and IHT changes as clients feel impact

Advice landscape has ‘fundamentally shifted’

Isabel Baxter
clock 20 March 2025 • 2 min read