New income tax rate set at 45%
The government has today introduced the new 45% tax rate for those earning over £150,000 per year but this is not planned to come into force until 2011. This has caused obvious concern within the Conservative party and while they have not commented specifically on the new tax, for fear of falling into a government trap, there are grave concerns that Conservative supporters will demand a clear strategy for the new income tax band.
This appears to be more of a political move that a fiscal move with the new tax band only affecting the top 1% of taxpayers in the UK and said to only raise a paltry £4 billion. At the same time as introducing this new tax rate the government has also confirmed that each basic rate taxpayer will be £145 better off next year due to changes in the tax bands. It is hoped that consumers will use this increased income wisely and it should hopefully instigate some form of economic recovery.
The Chancellor has caught many people off guard with his tax changes even though a number of the main ones where already leaked to the press. The 45% tax rate band had been kept under wraps until late last night and appears to have gone down well with traditional Labour supporters.
Gordon Brown still pushing for banking tax
Despite the fact that Gordon Brown's so-called "Tobin tax" appears dead in the water, it looks as the prime minister is still pushing for some kind of banking tax to rein in the power of this massive industry. Under the guise of making the banking sector "appreciate its social responsibilities" he has warned the UK banking sector in particular that changes need to be made and more accountability i...Read More
Yet more hope that the UK housing market is stabilising
The Royal Institute of Chartered Surveyors has today issued a new report on UK housing market signalling a possible stabilisation of prices. It has reported the smallest balance of real estate agents and surveyors reporting price reductions last month for over 18 months. However, we have seen an array of positive reports on the UK property market which failed to follow through and ultimately led t...Read More
Fury over Google's UK tax situation
It has been revealed that Internet giant Google would appear not to have paid any tax on UK advertising revenues of £1.6 billion in 2008. In a perfectly legal arrangement, Google has diverted all of its UK advertising earnings to an Irish subsidiary which saved the company an estimated £450 million in corporation tax for 2008. However, the revelation by the Times newspaper has certainly attracte...Read More
How can the government pay back the budget deficit?
As suggestions that this year's UK budget deficit will reach £50 billion and next year will be in the region of around £100 billion continued to swirl around the City many people may be wondering how on earth the UK government will be able to repay these borrowings. A possible total of £150 billion is no small figure although the repayment process is maybe a little more straightforward than man...Read More
Government to hit IT banking bonuses
The UK government has today warned IT staff working in the UK banking sector that they will also come under the controversial banking bonus tax if they receive bonuses of over £25,000. It appears that slowly but surely the UK government is widening the net with regards to the controversial tax which had appeared to be fairly and squarely targeted at UK financial highfliers. As with any governm...Read More