Wendy Walton says the reduction of the top income tax rate is a clear signal of the direction the government wishes to take, post recovery.
End of the 50% tax rate
The headline – and much anticipated – personal tax measure is the reduction in the top rate of tax on income over £150 000 from 50% to 45% with effect from 6 April 2013. In light of the government’s restated commitment to making the UK internationally competitive Mr Osborne was acutely aware that the 50% rate is the highest in the G20 so it was politically imperative to reduce it as soon as possible. Although the reduction is deferred by a year it is a clear signal of the direction the...
