{"id":18931,"date":"2013-01-14T08:17:48","date_gmt":"2013-01-14T08:17:48","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=18931"},"modified":"2013-01-14T08:17:48","modified_gmt":"2013-01-14T08:17:48","slug":"when-the-50-tax-rate-came-in-it-was-heavily-abused-its-departure-may-not-be","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/01\/14\/when-the-50-tax-rate-came-in-it-was-heavily-abused-its-departure-may-not-be\/","title":{"rendered":"When the 50% tax rate came in it was heavily abused: it&#8217;s departure may not be"},"content":{"rendered":"<p>When the 50% income tax rate was introduced in April 2010 we know that its introduction was\u00a0accompanied\u00a0by massive tax abuse, with income being shifted from the 2010-11 tax year into 2009-10. <a href=\"http:\/\/www.hmrc.gov.uk\/budget2012\/excheq-income-tax-2042.pdf\" target=\"_blank\">HMRC estimate around \u00a318 billion was moved between years to save tax<\/a>.<\/p>\n<p><a href=\"http:\/\/www.guardian.co.uk\/business\/2013\/jan\/14\/goldman-sachs-bonus-payments-tax-rate-cut\" target=\"_blank\">As is reported this morning<\/a>, as the end of the 50% tax era approaches companies are thinking hard about delaying income payments to\u00a0achieve\u00a0the same tax saving result for their\u00a0employees.<\/p>\n<p>Now I'm not saying for one moment that any leopards have changed\u00a0their\u00a0spots: they haven't, I'm sure. What I am suggesting is that tax campaigning has changed the tax environment in the meantime, for the better. And in the process all <a href=\"http:\/\/www.hmrc.gov.uk\/budget2012\/excheq-income-tax-2042.pdf\" target=\"_blank\">the absurd\u00a0calculations\u00a0on Laffer effects<\/a> offered by HM Treasury in 2012 need to be\u00a0revisited: it is very obvious that these\u00a0embraced\u00a0an\u00a0implicit\u00a0assumption that the behaviour would not be noted. When that assumption is\u00a0changed\u00a0then so does so the so called Laffer effect.<\/p>\n<p>Some of us have, of course, said this for a long time. Now it's time for those setting policy to notice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When the 50% income tax rate was introduced in April 2010 we know that its introduction was\u00a0accompanied\u00a0by massive tax abuse, with income being shifted from<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/01\/14\/when-the-50-tax-rate-came-in-it-was-heavily-abused-its-departure-may-not-be\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-18931","post","type-post","status-publish","format-standard","hentry","category-tax-avoidance"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/18931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=18931"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/18931\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=18931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=18931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=18931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}