Treasury figures highlight scale of tax avoidance
Almost 1,000 UK taxpayers earning more than £1m a year are paying a rate less than 30% of their income
THE TREASURY has released figures showing the scale of tax avoidance among Britain’s wealthiest.
The figures show that almost 1,000 UK taxpayers earning more than £1m a year have a tax rate of less than 30% of their income.
In an attempt to win back political ground over the budget, including its policy to introduce a cap on tax reliefs, it also revealed that of the 200 taxpayers earning more than £10m a year, 12 are paying less than 10% in tax.
It added that the government wants to create a US-style culture of giving. The US achieves this while having minimum rates of income tax for wealthy people.
It is the first time the Treasury has ever publicised such comprehensive data showing the tax rates of the super-rich and comes after the chancellor admitted his “shock” at the level of tax avoidance the rich were engaging in.
A Treasury spokesperson said: “There are currently millionaires paying a lower tax rate than ordinary taxpayers. This is the system we have at the moment, but the government is committed to making it fairer.
“We’re capping benefits and these figures clearly show why it’s fair to cap tax reliefs for the wealthy as well.”
