If you are in the fortunate position of being a high earner, the fact that you pay tax at up to 50% must be annoying.
But the situation is only temporary. On 11 May, in an address at the Institute of Director’s Annual Convention, the Chancellor of the Exchequer, George Osborne, re-confirmed what he had stated in the March budget that the 50% income tax rate was temporary. His actual words were ‘as I said in the Budget, high personal taxes can be as damaging to growth as high corporate taxes, so I am clear that the 50 pence tax rate would do lasting damage to our economy if it were to become permanent, as some suggest. It should be a temporary measure’.
Even paying 50% tax temporarily is unwelcome, but there are ways in which you can reduce or defer your tax liabilities.
Let Nicola know if this would be of interest – click here for contact information.
This newsletter article is for information purposes only and should not be viewed as advice. The correct course of action for any given situation is always subject to your individual circumstances and therefore you should always seek professional advice before making any decisions.
Levels, bases of and reliefs from taxation can vary and their value depends on the individual circumstances of the investor.
The Financial Services Authority does not regulate National Savings and taxation advice.
