UK rich pay minimum tax, 6 percent pay less than 10% tax

| May 3, 2012 | 0 Comments

UK rich pay minimum tax, 6 percent pay less than 10% tax

Six percent of brits, constituting the wealthiest part of the population have used tax reliefs to reduce their effective tax bills to less than 10 percent, according to the bittish finance ministry. Voices are now raised in Britain to “make the tax system fairer”.

3 percent of individuals earning GBP 1-5 million paid less than 10 percent for the fiscal tax year of 2010-2011. Voices are being raised regarding the altering of the tax relief on charitable donations. The newly implemented decision means that the tax relief is now capped at 25% of income, and this is likely to trigger a massive drop in UK charity donations.

Anyone earning less than GBP 34.370 is liable to 20% tax on income in Britan. For those earning more than GBP 150.000 pay an income tax of 50 percent, but that rate will be reduced to 45 percent in April 2013. But the Teasury has uncovered that people of lower incomes are paying higher tax rates in general than millionaires.

A Treasury representative was clear about the background to the decision: “We´re capping benefits and these figures clearly show why it´s fair to cap tax reliefs for the wealthy as well.” Worldtaxguide.com will be following further developments on this issue closely and report any changes in policy as soon as they materialize.

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