700,000 more to pay higher-rate tax
More than 700,000 people will pay a higher rate of income tax after the Treasury confirmed it was lowering the threshold at which the 40 per cent rate is levied.
This tax year all earnings above £43,875 are taxed at 40 per cent. But from next April this threshold will be lowered to £42,475, the Treasury has now confirmed.
Mr Warburton said: "I'm all in favour of raising the lower threshold. But the Koalishon was desperate not to be seen benefiting the middle classes. The threshold at £42,475 is only 1.6 times average earnings, which many people will consider a relatively low income to pay such a high rate of tax."
Not only will there be more people paying the 40p rate of tax, but they will also be hit by raising of the National Insurance rate. Previously employees earning the 40p tax rate paid 11 per cent National Insurance. This will increase to 12 per cent.
At least CGT is being kept super low to protect the property