Two-thirds of millionaires left Britain to avoid 50p tax rate

The Telegraph ^ | November 27, 2012 | Robert Winnett

[NCjim]

Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.

In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.

This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.

The figures have been seized upon by the Conservatives to claim that increasing the highest rate of tax actually led to a loss in revenues for the Government.

It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes.

George Osborne, the Chancellor, announced in the Budget earlier this year that the 50p top rate will be reduced to 45p from next April.

Since the announcement, the number of people declaring annual incomes of more than £1 million has risen to 10,000.

However, the number of million-pound earners is still far below the level recorded even at the height of the recession and financial crisis.

Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.

Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.

[seowulf]

The vindictive Kenyan knows that The Evil Rich can live anywhere in the world.

East Germany had a way to fix that.

[Suz in AZ]

I think it is more important to win the elections boards, the school boards and replace the boards of regents.

[MondoQueen]

I totally agree that we should start with the school boards!

[goat granny]

You feel that way cause you haven’t lived long enough to know it use to be how much income you made in a year. 250,000 was introduced as millionaire by the democrats a few years back and no one called them on it...I think it might have been Gore that said it the first time...And it is a really stupid comment. Silly to the point of owning a house and car puts most people in that catagory...I know what we should do......lets all rent and let the guy renting to us take that huge tax bite...I wonder how long he will keep the rentals at a price anyone can afford...and thank you for adding that a millionaire makes 250000 dollars to our dictionary. Laughable, bet your not out of you teen years yet, at least that what it sounds like...and lets call a dog a horse while we are changing definations..

[Winniesboy]

At the risk of seeming pedantic (well, being pedantic) perhaps it ought to pointed out that two-thirds of those earning a million or more a year is not the same, as claimed in the headline, as ‘two-thirds of millionaires’. There are plenty of millionaires with incomes lower than this, and there’s no evidence here of what proportion of these have left. My guess is far fewer: since in many cases wealth is in property, and this discourages mobility. Also that the 50% rate has not been payable on the first £150,000 of income.