Private wealth taxes 'to boost government revenue'

New taxes on those with high levels of private wealth will help boost the government’s income tax revenue this financial year.

This is according to new figures from HM Revenue and Customs (HMRC), which has predicted income tax generated in 2010/11 will be £10 billion higher than the figure recorded in the previous 12 months.

It expects people to pay £161 billion in income tax, with a 400,000 increase in the total number playing a part in the rising figure.

The new 50 per cent tax for those earning over £150,000 will account for the bulk of the increase, HMRC said.

Approximately 3.1 million individuals are forecast to pay at least 40 per cent tax, the figures showed.

Saffery Champness accountant Ronnie Ludwig was quoted by the BBC as saying tax revenue could increase further in the years to come, stating: ’If personal allowances and tax bands remain frozen, more people will be dragged into the higher rate bands.’ADNFCR-2318-ID-19764417-ADNFCR