Chancellor said to be considering changes to higher rate tax threshold

The Chancellor is reported to be considering increasing the level at which people are liable to pay the higher rate of tax.

It is understood that George Osborne wants to take another step towards the £50,000 threshold that he is keen to reach by the end of the decade.

Currently, the 40p income tax threshold applies to those who are earning in excess of £42,385 a year.

There have, however, been suggestions that Mr Osborne may have to raise other taxes – such as fuel duty – to afford the change.

It is possible, and in my opinion likely that many of the final details of the Budget, which is scheduled for next Wednesday (March 16th), are still to be agreed.

Only last week plans to introduce pension ISAs were abandoned in response to concerns from many of the Government’s own MPs and the feasibility of further proposals may well rest on the latest forecasts from the Office for Budget Responsibility (OBR).

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Lee Davy-Martin

Lee Davy-Martin

Partner at Wilson Wright
Lee works closely with his clients, building long-term relationships and facilitating the provision of strategic and commercial advice. It is for this reason that Lee works particularly well with new business ventures and businesses which intend to restructure.
Lee Davy-Martin

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