‘One in ten’ multi-millionaires paying less than 20% tax rate

Nearly 10% of individuals who earn more than £10 million a year are paying income tax at less than the basic rate of 20%, HM Treasury has revealed.

The publication of the figures follows recent criticism of the Government over plans to limit tax relief on charitable donations, amid concerns that such action could lead to a significant drop in gifts to charity.

The rules, which are set to come into force in April 2013, will mean that tax reliefs on charitable donations will be capped at £50,000, or 25% of income if that is greater.

While critics have argued that the majority of people who give to charity do so for philanthropic reasons, the Government has insisted that some wealthy individuals use charitable donations as a way of effectively ‘opting out’ of the tax system.

The new cap on relief is expected to bring in additional revenue of £50-£100 million a year.

 

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We are a firm of Accountants based in Harrow, Middlesex offering tips and tax advice to help sole traders, individuals and businesses in the UK grow. We'll also keep you up-to-date with the latest tax news hitting the headlines! We hope you find our blog helpful and appreciate any feedback.

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We are a firm of Accountants based in Harrow, Middlesex offering tips and tax advice to help sole traders, individuals and businesses in the UK grow. We'll also keep you up-to-date with the latest tax news hitting the headlines! We hope you find our blog helpful and appreciate any feedback.

Les Conway

I offer a comprehensive financial planning service covering all aspects including retirement planning, protection and investment needs

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