Mortgage News
Govt rejects call to scrap 50p tax rate
Downing Street has rejected calls from a group of prominent economists to drop the 50p tax rate as soon as possible, although it has continued to insist it is only a temporary measure.
In a letter to the Financial Times published yesterday, 20 high-profile economists argued the abolition of the top band “at the earliest opportunity” would help to create a competitive tax regime and drive economic growth.
However, a spokesperson for the Prime Minister said a “meaningful” decision on the matter was unlikely before 2012, the Financial Times reported.
“As the chancellor said at the time of the Budget, the 50p rate is a temporary measure,” the spokesperson said.
“He has asked Revenue and Customs to conduct some analysis on the amount of money being raised by the 50p rate. That analysis is ongoing.”
The government also said its current priority was to raise the threshold for paying basic rate income tax to £10,000.
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