50p tax is 'beginning to look unfair'

Date: 5th February 2010

Proposed tax increases in the UK are "beginning to look unfair", the Chartered Institute of Taxation (CIOT) has claimed.

The view follows comments from City minister Lord Myner which suggested some taxpayers will take measures to avoid the taxation.

As a result the Treasury has lowered its estimation of how much money it thinks the tax will yield.

Commenting on whether measures to tax high earners more heavily, CIOT tax policy director, John Whiting said it is only right that those earning £150,000 per year should contribute a higher proportion than those on £15,000.

However, the expert added that the "cumulative effect of all the tax increases" could prove risky and cause a "behavioural change" among high-earning taxpayers.

"At the end of the day, it's clear that to cure this deficit the pain has to be spread around and the better off will have to shoulder an appropriate proportion of the burden – but they can't shoulder it all, there simply aren't enough of them," he said.