66% believe 50p tax rate damages the UK

Two thirds of practitioners in the financial services sector believe that the 50p rate of income tax damages the UK and should be abolished, which would lead to a rise in the number seeking the best savings rates.


A report by the Chartered Institute for Securities and Investment has warned that many respondents believe that Britain faces a drain of talent to countries with lower tax rates, while others have highlighted the fact the levy acts as a disincentive to wealth creation.


"It changes one's focus from maximising earnings to maximising tax efficiency. End result – lower earnings, lower taxes, weaker economy," one of the surveyed individuals claimed.


In contrast, those in favour of the rate stated that those earning over £150,000 are more easily able to afford to pay the tax and that this will allow lower earners to pay less.


Recent HSBC research found that a third of those of the general public who receive a windfall such as an inheritance will put the money aside in an account with the best savings rates in order to prepare for the future.

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2011-10-05 13:02:44 © Moneyextra.com