Chancellor U-turns on top rate of tax
The decision to scrap the 45% tax rate has been widely criticised amid a cost-of-living crisis. This morning the Chancellor has announced a U-turn. What's the latest?
The Chancellor has confirmed that the tax cut will not go ahead, due to the distractions this policy has caused. From 6 April 2023 those earning over £150,000 will continue to pay the top rate of 45% income tax. However, due to other planned tax cuts, those with income over £150,000 will pay just 38.1% income tax on dividends from 6 April 2023 (currently 39.35%), meaning there will still be an incentive (albeit a smaller one) to delay dividends until on or after 6 April 2023.
The Chancellor is set to announce his medium-term fiscal plan on 23 November.
Related Topics
-
Deadline to file paper self-assessment returns
-
Autumn Budget 2026 – what are the key tax announcements?
The Chancellor delivered the Autumn Budget on 28 October, announcing a mixture of tax increases, new reliefs and changes to the way tax is administered. Although the headline rates of income tax, National Insurance (NI) and VAT remain unchanged, there are some significant changes affecting business owners, landlords and private individuals. What are the main announcements?
-
Menopause and mental health support can be tax-free
Employers offering counselling and wellbeing services to staff have received clarification about which services can be provided tax-free. Updated guidance specifically includes menopause and mental health support, but not all employee assistance programmes will qualify. What should employers check?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.