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50% Rate could be axed in 2013 after revenue review

The 50p top rate of tax could be scrapped by 2013 after the Chancellor announced a review of its effectiveness at generating revenue.

Reports suggest George Osborne is considering dropping the tax in the 2013 Budget after he reiterated last week that it is only a temporary measure.

Osborne said now would not be the right time to remove the 50 per cent rate but it is “sensible to see how much revenue it actually raises”.

He asked HM Revenue & Customs to review revenues raised from the top rate of income tax on the basis of self-assessment forms returned.

The Office for Budget Responsibility said there is evidence that companies paying bonuses before the rate came in, as well as business owners paying themselves big dividends, has led it to assume £2bn of additional income had been collected in the 2009/10 tax year. It said those revenues would not be available this year.

The 2009 Budget announced the 50 per cent rate, which was introduced from April 2010. The 50 per cent rate is payable on income over £150,000. founder Justin Modray says: “It is good news if the Government can afford it, particularly for the higher-earners. However, it may be a stretch if the growth figures come in under expectations.”



Towry receives over 2,000 complaints plus 97% upheld

Towry received over 2,000 complaints in the second half of last year, with 97 per cent of complaints upheld over the same period. The bulk of Towry’s complaint figures between July 1 and December 31 relate to its takeover of Edward Jones, with 1,301 new complaints received by Towry Edward Jones and 766 received by […]


Barclays tops complaints league table

Barclays Bank received more complaints than any other financial institution during the second half of last year. FSA complaints figures published today reveal that the bank received 276,315 new complaints between July and December last year.  Over the same period it closed 279,646 complaints, and of those 55 per cent were upheld. Across the Barclays […]

Chorley BS launches 90% exclusive through Mortgageforce

Chorley Building Society has launched a range of exclusive products with Mortgageforce, including a 90 per cent loan-to-value mortgage. The product is a two-year discount mortgage at 4.99 per cent with a £995 fee. It is portable and has a maximum loan of £500,000. Mortgageforce managing director Kevin Duffy says: “It is refreshing that in spite of the […]


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