The UK’s wealthiest taxpayers pay a “higher proportion of income tax” following the reduction in the top rate of tax from 50 to 45 percent, Chancellor George Osborne has said.
Answering parliamentary questions, Osborne said: “Under the present Government, the richest pay a higher proportion of income tax than they did under the last Labour Government. Figures published this morning by HMRC contain, for the first time, the income tax data for 2013-14, which was when the 50p rate was reduced to 45p.”
“The data reveal that in that year there was an GBP8bn (USD11.1bn) increase in revenues from additional-rate taxpayers, which completely defies the predictions made by the Labour Party at the time, and shows that we have lower, competitive taxes that are paid by all.”
Osborne’s comments met with a rebuttal from Labour’s Shadow Chancellor, John McDonnell. He said: “No one seriously believes these fantasy figures from George Osborne. And it will come as no surprise that yet again this bankers’ Chancellor is playing fast and loose with figures to justify his tax giveaways to a wealthy few, while making the rest of us worse off.”
“The truth is that the delay in implementing the 45p rate probably allowed significant time for many wealthy people to structure their tax arrangements so that they could simply pay it at the Chancellor’s new lower rate. Now George Osborne is trying to hide the fact that this was really a giveaway to people at the top while everyone else pays more.”
According to HMRC’s figures, 82 percent of taxpayers are basic rate (20 percent) taxpayers. They account for 34 percent of the total tax take. Higher rate (40 percent) taxpayers make up 14 percent of taxpayers, and additional rate (45 percent) taxpayers represent just one percent of the total.
Source: Robert Lee, Tax-News