10 June 2010
Our reference: EMAIL /23758/2010
Fairer Tax Campaign Team
Dear Fairer Tax Campaign Team
Thank you for your email dated 8 April 2010 concerning taxation. I have been asked to reply as the responsible official and I apologise for the delay in doing so.
The Government has made clear that it is important that the tax system is both fair and competitive. We believe it is right that at this time we focus on helping people on low and middle incomes through the tax system. This is why at the Budget we will announce substantial increase in the personal income tax allowance, to ensure millions of people pay less tax. And our longer term goal is to raise the allowance to £10,000, with real terms steps in that direction every year.
We believe that high marginal tax rates are not good for the UK. While we have taken action first to reduce tax bills for low and middle income individuals, we will continue to look at the yields from different taxes including the 50p rate. A fair tax system also means ensuring that the taxes that remain are an efficient and effective way of raising revenue, and we will therefore keep under review all taxes to ensure that this remains the case. We do not believe that the 50p rate should be a permanent part of the UK's tax system.
Thank you for taking the time to raise your concerns about this with us and I hope you find this reply helpful.
Yours sincerely,
Personal Taxation Team
HM Treasury
Our reference: EMAIL /23758/2010
Fairer Tax Campaign Team
Dear Fairer Tax Campaign Team
Thank you for your email dated 8 April 2010 concerning taxation. I have been asked to reply as the responsible official and I apologise for the delay in doing so.
The Government has made clear that it is important that the tax system is both fair and competitive. We believe it is right that at this time we focus on helping people on low and middle incomes through the tax system. This is why at the Budget we will announce substantial increase in the personal income tax allowance, to ensure millions of people pay less tax. And our longer term goal is to raise the allowance to £10,000, with real terms steps in that direction every year.
We believe that high marginal tax rates are not good for the UK. While we have taken action first to reduce tax bills for low and middle income individuals, we will continue to look at the yields from different taxes including the 50p rate. A fair tax system also means ensuring that the taxes that remain are an efficient and effective way of raising revenue, and we will therefore keep under review all taxes to ensure that this remains the case. We do not believe that the 50p rate should be a permanent part of the UK's tax system.
Thank you for taking the time to raise your concerns about this with us and I hope you find this reply helpful.
Yours sincerely,
Personal Taxation Team
HM Treasury
