The
higher rates of income tax are also being increased, going to 41p and 46p.
Jeremy Corbyn This concentration has been increasing over the last decade partly due to the pay and benefits freeze and cuts in corporation tax and the threshold at which
higher rates of income tax are paid.
But others have changed their minds about plundering pots after working out the tax implications - as cashing in funds can make you liable for
higher rates of income tax.
Shadow chancellor Ed Balls has already ruled out rises to VAT, national insurance and the basic or
higher rates of income tax.
Later, Shadow Chancellor Ed Balls said Labour was in a position to make manifesto pledges "not to raise VAT, not to raise the basic and
higher rates of income tax, and not to raise National Insurance".
JOBS Minister Richard Bruton has claimed
higher rates of income tax are a "handicap to investment".
The ability for an individual to drain one's pension fund well in advance of normal retirement potentially triggering
higher rates of income tax not having sought advice will provide an ideal headline in months to come.
The Chancellor could also freeze the threshold at which basic and
higher rates of income tax kick in - meaning an extra 70,000 could end up paying more tax.
The payment in 1993 of postponed public sector pay increases will imply substantial rises in spending at a time when the government has commitments to reduce the standard and
higher rates of income tax and to cut the standard rate of VAT.
The basic and
higher rates of income tax remain unchanged at 20%, 40% and the 45% tax rate continues to be relevant for those with taxable income in excess of PS150,000.
The IFS highlighted the "problematic" failure to uprate tax thresholds in line with inflation, and warned of a "rapid" increase in workers paying
higher rates of income tax as the economy improves.
Scotland will have the power to set income tax rates and to set the threshold for
higher rates of income tax, although the initial threshold at which tax begins to be paid will still be set by Westminster.
