Chancellor cuts 50 per cent tax rate

The Chancellor George Osborne has cut the 50 per cent tax rate, lowering it to 45 per cent in yesterday's Budget. Mr Osborne confirmed that from April 2013 the rate will be reduced to 45 per cent, in a bid to encourage investment and business in the UK. The move was also driven by claims that the 50 per cent tax rate had resulted in large numbers of people engaging in tax avoidance plans. This included moving income into the tax year before the 50 per cent rate was brought in and transferring funds overseas in a bid to keep them from the tax man. By lowering the rate to 45 per cent, the chancellor hopes to change the behaviour of those on the top rate of tax in the UK. Yesterday's Budget also saw the introduction of a number of tighter regulations to prevent tax avoidance in other areas. A 15 per cent stamp duty rate on homes held through companies and a hike in stamp duty on homes worth over £2 million were among the extra taxes imposed on the wealthy. Meanwhile, those at the lower end of the income scale will benefit from an increase in the tax-free earnings threshold. This will be increased to £9,205 in a number of gradual increments.

http://www.50percenttax.co.uk/index/2012/3/26/chancellor-cuts-50-per-cent-tax-rate.html