[Opinion] UK Govt. scraps tax cut on high earners and more

Taxmann’s Editorial Team – [2022] 143 taxmann.com 89 (Article)

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Here is a glimpse of the tax happening in the world this week.

1. UK Govt. scraps tax cut on ‘High Earners’

On 23rd September 2022, the UK’s Finance Minister, Mr. Kwasi Kwarteng, presented the UK’s ‘The Growth Plan 2022’. He announced that the additional rate of 45% on the richest person will be removed from April 2023. 45% additional tax is levied on a person earning taxable income of above £ 150,000. After the removal of the slab of 45%, the taxpayers would fall under the tax band of 40%.

Subsequently, the Finance Minister announced that the UK Govt. would be scrapping its plans to cut the tax rates on high earners in the country. The decision came after a public backlash and market turbulence after the announcement of the end of the 45% tax rate from April 2023.

Source:
Kwasi Kwarteng’s tweet
The Growth Plan 2022

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