Chancellor scraps plans to remove 45% income tax rate for high earners

'Has become a distraction from our overriding mission'

Valeria Martinez
clock • 2 min read

Chancellor Kwasi Kwarteng is reversing the proposed scrapping of the 45% rate of income tax for high earners, ten days after it was first unveiled in the Mini Budget.

"It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle challenges facing our economy. As a result, I am announcing that we are not proceeding with the abolition of the 45p tax rate," he said in a statement. The chancellor said that this would allow the government to focus on "delivering the major parts" of the Mini Budget, including its energy price guarantee, cutting taxes and driving supply side reforms and infrastructure projects. The U-turn comes after several Tory MPs voiced their opposition to the plan and comes after T...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Autumn Budget 24: Business owners hit with surprise tax triple whammy

Autumn Budget 24: Business owners hit with surprise tax triple whammy

Business owners face CGT, IHT, NICs changes

clock 30 October 2024 • 4 min read
Autumn Budget 24: Non-dom status abolished from April 2025

Autumn Budget 24: Non-dom status abolished from April 2025

Non-dom regime 'outdated', Reeves said

clock 30 October 2024 • 4 min read
Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

Chancellor Rachel Reeves has said there will be no extension of the freeze in income tax thresholds beyond 2028.

clock 30 October 2024 • 3 min read