The UK Is Cutting Its Top Income Tax Rate From 50 per cent To 45

George Osborne

Photo: Flickr

LONDON (AP) — Britain’s finance minister is cutting the top income tax rate from 50 per cent to 45 per cent effective next year but has imposed additional taxes to raise more money from the wealthiest 1 per cent.George Osborne, the chancellor of the Exchequer, said in his budget speech Wednesday that the top tax rate had raised less money than expected. He also announced higher tax rates on homes worth more than 2 million pounds ($3.2 million) which are owned by overseas corporations, a method used by some wealthy people to lower their property taxes.

Osborne also announced that, effective in April 2013, he was raising the amount of income exempt from tax, a step which favours the poorest taxpayers.

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