Monday, 31st January 2011

About 175,000 people earning £40,000 a year will see their marginal rate of tax more than double from 30 per cent to 70 per cent from April 6 because of complex changes to the tax system, according to the Institute for Fiscal Studies (IFS). At the same time, a reduction in the point at which higher rate tax is imposed will require an extra 750,000 people to pay 40 per cent income tax – and the IFS predicts that one in five could suffer higher rate tax by the time of the next General Election.

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