High earners in the UK pay least tax in Western Europe

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UHY Hacker Young studied tax data in 25 countries across its international network. Their findings showed that Labour Party plans to reintroduce the “50p tax rate” would see high earners in the UK pay 24% more in tax than the current international average.
UHY Hacker Young studied tax data in 25 countries across its international network. Their findings showed that Labour Party plans to reintroduce the ’50p tax rate’ would see high earners in the UK pay 24% more in tax than the current international average.

The firm’s research suggests that the proposed increase in the top tax rate would see high earners in the UK take home 50% of their income after tax and National Insurance, moving them from 14th most heavily taxed of the countries up to eighth in the rankings of the countries studied.

The firm’s research also suggests the UK’s current system is more attractive for top earners than the rest of Western European, with take home pay $67,637 (€50,344) higher than the region’s average.

The flat tax rate in Dubai and Russia of no taxation means that all taxpayers receive 100% and 87% respectively; while residents earning $1.5m (€1,116.443) in Slovakia, the Czech Republic and Jamaica all keep more than 70% of pay. Eastern European and emerging economies also offer the most generous tax rates to their high earners.

Mark Giddens, partner at UHY Hacker Young stated ‘reintroduction of the 50p tax rate could be something of a backwards step at a time when other countries are rolling back their top rates of tax, and could put the UK at a significant disadvantage to its rivals’.