FINANCE and Economics have made major concessions on their proposals to cap tax allowances for higher earners.
On the eve of the States debate on tax policy the committee say they have ‘refined’ their plans so that high earners will not necessarily see their allowances being phased out at the £40,000 salary level.
The proposal is part of their overall Fiscal Strategy being debated in the States tomorrow.
The committee say they accept that such rigid rules will not work because of the many differences in family circumstances.
They say they have listened to concerns expressed during the consultation process and are amending their plans as a result.
The proposals to phase out allowances and exemptions will still hit an estimated 14,300 taxpayers - those said to be earning ‘extremely high incomes’, although no exact figure has been published.
The remaining 36,000 taxpayers will be unaffected but the proposals should still raise an extra £10 million in income tax a year.
Article posted on 5th July, 2004 - 12.00am
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