The government has asked for views on its proposal to cap income tax relief from April 2013 in an effort to stop wealthy individuals from using tax breaks to avoid tax.
As announced in the 2012 Budget, the cap will be set at £50,000 or 25% of an individual’s income - whichever is greater. The aim is to stop individuals from reducing their income tax bills to zero by using these income tax reliefs “to excess”, the Treasury consultation says.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.