Osborne aims to scrap 50p tax rate in 2013

Chancellor George Osborne is planning to scrap the 50p top rate tax in the 2013 Budget after growing evidence that people were going to great lengths to avoid it and were subsequently undermining the Treasury’s revenues, according to the FT.

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

Osborne has never highlighted any timetable for the tax but has said that it would be temporary.