Raising income tax for higher-paid individuals is "counter-productive"

Introducing an increased income tax for those on higher wages would be ’counter-productive’. one Big Four accountancy firm has argued.

Commenting ahead of the chancellor’s Pre-Budget Report tomorrow, head of tax policy at Deloitte Bill Dodwell said such a move is unlikely to be implemented.

He explained that doing so would encourage those with significant wealth to consider emigration or use other tax planning measures, something that ’isn’t a great economic strategy’.

There has also been ’some speculation’ that an increase in the capital gains tax rate could be raised beyond its current level of 18 per cent, Mr Dodwell remarked.

Such a decision would bring the figure more in line with income tax rates but would not raise a great deal of extra income for the Treasury, he noted.

Last month, head of taxation at the Association of Chartered Certified Accountants Chas Roy-Chowdhury warned that the situation regarding tax in the UK is currently ’uncertain’.ADNFCR-2318-ID-19502213-ADNFCR