50p tax rate is 'damaging the UK'

Date: 5th October 2011

Contractors and other individuals in the top tax bracket could be among those interested in the findings of a recent report.

A survey carried out by the Chartered Institute for Securities & Investment has shown that two-thirds of financial service practitioners believe the 50p rate of income tax is damaging the UK.

The respondents' primary concern was that the tax will lead to a drain of talent in the UK, with skilled professionals opting to work in countries with more attractive tax systems in place.

One argument put forward was that the tax levy on those earning over £150,000 a year is a "disincentive to wealth creation and does little to boost the Treasury's coffers".

"I don't accept that higher earners, who in general use few social services, fund their own pension, often pay for health insurance and are entitled to few benefits should they lose their job, are expected to increase their subsidy of society above the long-established 40 per cent level," one contributor commented.

Posted by Jacob Williams