In Great Britain the income tax payment procedure is being revised

21.03.2012 On March 21, 2012 Chancellor George Osborne submitted for approval of Parliament the draft of the Budget 2012. The amendments have respect to the procedure of  income tax payment. As provided in the Budget 2012 the top rate of the income tax should be reduced from 50% to 45%.  Moreover, the issue concerning the imposition of a stamp duty in respect of the real property purchase on the territory of Great Britain is revised. Now the rate of the implemented stamp duty to be imposed is 7%.

It should be recalled that the stamp duty in respect of the real property purchase wasn’t imposed earlier.

The abovementioned measures are implemented in order to avoid the recession of British economy, arose during the Eurozone crisis at the end of 2011.

Expert’s opinion

«A few years ago the real estate purchase in Great Britain was more attractive for a legal entity rather than a private person. Nowadays the governmental decision has been made in order to modify this situation by tax implementing. That remains to be seen whether it will have an impact on purchasing power or not.
The income tax rate reduction is a positive amendment for the residents of Great Britain. Although it is unlikely to define the 45%-rate as a small index».

On the basis: www.telegraph.co.uk

Lomakina Irina ( the director of Moscow office of Honest & Bright )