Britain's wealthiest 14% pay for 60% of tax spending

Britain’s wealthy are expected to pay 60% of the money raised by the Treasury from income tax, even though they account for only 14% of taxpayers, official figures have shown.

Data released by HM Revenue and Customs has shown the impact of the Coalition’s move to ease the tax burden on the lowest paid.

According to a report in The Sunday Times, the number of people liable for the 40 and 50% tax rate has increased from 3.25 million in 2010-2011 to 4.13 million in the current financial year.

Their share of the income tax burden has risen from 54.2% in 2010-11 to 61.3% in 2012-13.

The wealthiest one per cent of taxpayers, nearly 300,000 people who earn more than £150,000 a year, are shouldering 26.5% of the income tax burden.

Nearly half of these people live in London or the South East.

However the reduction of the top rate of tax from 50% to 45% from April has had an impact with the wealthiest appearing to defer some of their income.

The figures also show the very richest, the 4,000 people earning more than £2 million a year – representing just 0.01 per cent of taxpayers will pay 4.5% of the country’s income tax.

At the other end of the scale, the number of taxpayers is expected to fall just below 30 million as a result of the 1.4 million who will see their liability disappear because of higher personal allowances introduced by the Coalition.

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