High-earners 'to try and avoid 50% tax
Many high-earning employees will take steps to try and avoid the new tax being introduced by the government, it has been claimed.
Those earning over £150,000 a year will be subject to a 50 per cent levy from April, but tax policy director for the Chartered Institute of Taxation John Whiting explained that people on large incomes will investigate methods in a bid to protect their
private wealth.
’Some will look to tax schemes that turn income into capital,’ he remarked, but added that these could also be ’high risk’ as they will be watched ’very carefully’ by HM Revenue & Customs.
Others, Mr Whiting said, are looking to move their income either into the current tax year or defer it in the hope that the 50 per cent levy will not last forever.
The aim of the tax is to generate money to fill the current deficit in public spending and the expert argued that it is unreasonable to expect high earners to shoulder the entire burden.
He was commenting after City minister Lord Myner observed that the Treasury has had to lower the amount it expects to receive from the levy due to actions high-earners are expected to take to avoid it.
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