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Speculation mounts over future of 50p tax rate
There is growing speculation over the future of the 50p income tax rate after the Prime
Minister signalled that the rate is unlikely to be scrapped during the course of the
parliament.
Speaking to the BBC, the PM indicated that the top tax rate, which is levied on incomes
of more than £150,000, will remain in place until 2015.
'When you're taking the country through difficult times and difficult decisions, you've got
to take the country with you,' said Cameron. 'I think that means permanently trying to
make the argument that what you're doing is fair.'
Cameron also suggested that the Budget would not contain a ‘mansion tax’ on high
value properties.
However, with business leaders and Tory backbenchers expressing unease over the top
rate, Cameron later insisted that he does not view the 50p rate as a ‘permanent
measure’.
He told Sky News: 'It is temporary. We don't want high marginal rates of tax. We have
also got to look at the evidence of the 50p tax. Is it raising a lot of revenue? If it isn't then
clearly there will be question marks over it.’
HMRC is currently examining its data to assess whether or not the 50p tax rate is
generating revenue. According to recent press reports, the review is expected to show
that the top tax rate has led to a ‘surge’ in tax receipts.