US EditionReeves plots tax raid on GPs and lawyers
The planned tax aims to raise £2 billion by targeting high earners in partnerships to address a £30 billion to £50 billion public finance gap, officials said.
- In her Budget next month, Rachel Reeves, chancellor, will impose a charge on partnerships and limited liability partnerships to raise 2 billion pounds, aiming to fill a 30 billion–50 billion pound fiscal gap.
- Rachel Reeves said on Tuesday that Brexit and austerity had a bigger effect on public finances than expected, while the Office for Budget Responsibility next month is expected to downgrade growth forecasts.
- Data-first: Average incomes for GPs the average is 118,000 and for accountants 246,000, underlining high earnings among partnership workers.
- The charge is expected to be levied at a slightly lower rate than employers' national insurance, and economists warn it may disincentivise work or prompt some to leave the UK.
- Experts note partnership income is highly concentrated, with almost half going to the top 0.1 per cent, and Stuart Adam and Arun Advani argue LLP members are well off; Ms Reeves may propose a 'mansion tax'.
12 Articles
12 Articles
The 190,000 people who could face 'national insurance' hike – and why it’s a risk
When Rachel Reeves delivers her next Budget at the end of November, it is rumoured she will confirm a £2bn tax rise aimed at the country’s highest-earners. The Chancellor is reportedly preparing to impose a new national insurance-style charge on members of limited liability partnerships (LLPs) – a change that would hit about 190,000 lawyers, family doctors, accountants, and fund managers. The proposal, first reported by The Times, would end what…
The Independent
The Independent (US)Rachel Reeves ‘plots tax raid on solicitors and GPs in crackdown on UK’s wealthy’
Chancellor to crack down on loophole under which partners do not pay employer national insurance
Rachel Reeves to launch £2billion tax raid on doctors and lawyers as she targets wealthy in Budget
Rachel Reeves is set to unveil a £2billion tax charge on lawyers, family doctors and accountants as part of plans to balance the nation’s finances by targeting high earners
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