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Pre Budget Report 2009: PBR to target high earners

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30th Oct 2009
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Accounting firm MacIntyre Hudson predicts the government will continue its strategy of targeting high earners in this year’s Pre-Budget Report.

Among the measures predicted are the introduction of a new wealth tax on fortunes over £1 million, lifetime restrictions on inheritance tax relief for business and agricultural property, a new 25% flat rate of capital gains tax, and lowering the threshold for the new 50p rate of income tax to earnings in excess of £110,000.

Nigel May, tax principal at MacIntyre Hudson commented: “The sport of dragging the Conservatives into a Labour tax agenda has certainly become popular in recent months. Labour will up the ante on this front, namely by provoking the opposition with further tax increases on high earners.

"These politically-charged moves force the Conservatives into a Catch-22 situation: accept the need for rises and risk dissent in the Conservative ranks, or oppose the rises and be painted as a party out of touch and out to protect the wealthy. Brown and Darling will be curious to see how far they can push these sabotage tactics ahead of next year's electoral showdown."
 

For more coverage of the Pre-Budget report predictions, visit our sister site, FinanceWeek.co.uk.

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By User deleted
11th Nov 2009 14:47

The sport of dragging the Conservatives into a Labour tax

As much as Jon may like the journalism opportunities the Sport he mentions could heavily backfire.  I am not sure that with the election some 7 months away that I would want to play this game at this time. 

Public opinion may on the surface belive this is the way forward but the number of ordinary taxpayers that I speak with are concerned that if the wealthy are hit they will exit the UK.  Meaning of course more tax to fall on those who remain behind.

Perhaps time for an extra tax on Journalists!

 

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