Property tax is just one issue that complicates the incomes of high-earners, according to a pre-Budget report from the TUC.
The union is opposing the viewpoint that the 50p rate of income tax should be removed, instead calling for measures to be introduced to prevent tax avoidance among “the super-rich”.
For instance, it notes that people with larger amounts of money may also have more sources of income – ranging from buy-to-let properties to shares and investments.
However, this also gives them more ways to escape paying income and property tax, as they can set up companies and trusts to manage their affairs.
Brendan Barber, general secretary of the TUC, says many of the super-rich “are enjoying tax breaks worth more than nearly 8 million people earn in a year”.
If your income is over £150,000, the TUC estimates that tax relief available to you at present totals £15,000 per person, or £3.5 billion in total for those in the 50p tax band.
That, the TUC says, is more than the annual income of 31% of UK workers – and is money that should be put towards clearing the UK’s Budget deficit instead.
Whatever your circumstances, our Manchester accountants can help you to get your finances in order, and may be able to help you identify ways to reduce your outgoings due to tax.