Chancellor 'Will Cut Top Tax Rate' In Budget

Chancellor George Osborne is expected to cut the top income tax rate on earners over £150,000from 50p to 40p in next week's Budget, according to reports.
Downing Street said the claims to reduce the levy were "speculation" but government sources have confirmed the Chancellor is set to introduce a "Downton Abbey" tax break to benefit the television industry.
Details of the Government's statement are set to go to the Office of Budget Responsibility today to allow the independent body to work out its official forecasts.
Mr Osborne is set to push ahead with a reduction in the 50p rate after analysis found the levy is reaping far less for the Exchequer than expected, according to The Guardian.
A preliminary study, due to be published next week, is to show the tax on the highest earners is bringing in hundreds of millions, not the £2.6bn predicted, the paper said.
Mr Osborne has come under pressure from business leaders, as well as many in his own party, to slash the top rate of income tax amid claims it deters money-makers from being based in Britain.
But some senior figures fear it would be politically dangerous to cut levies on the highest earners at a time of austerity.
Shows like Downton Abbey could benefit from a tax break worth tens of millions of pounds a year under plans expected to be announced in the Budget.
The Chancellor is expected to announce a consultation on extending to cinematic-style TV production the existing tax relief worth £100m a year to the UK film industry.
TV firms could see their corporation tax burden reduced by around 20%-25% as a result of the changes being considered.
Mr Osborne hopes to help British companies compete in the increasingly popular market for film-standard TV series, until now dominated by US hits like Mad Men and The Wire.
The relief is expected to be aimed at "culturally British" programming to help support shows distinctive to the UK for export to the rest of the world.


Source:http://uk.news.yahoo.com/chancellor-cut-top-tax-rate-budget-052737056.html


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