I’m not wealthy enough to benefit from cut in the 50p top tax rate, says Osborne

 
“Not a winner”: the Chancellor said he won’t gain from his 5p cut in the top income tax rate
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George Osborne today denied being rich enough to pay the top 50p tax rate and said he would gain nothing from his own Budget.

Despite being regarded as one of the Cabinet’s wealthiest members, he said: “My salary is less than the £150,000 threshold. I am not a big winner from this Budget — I am not a winner from this Budget.”

His denial surprised some MPs because the Chancellor’s £134,565 salary is only £15,405 below the threshold, and in addition he declares renting out his £2 million Notting Hill home and owns a 15 per cent share in his family’s decor and furnishings business worth an estimated £4 million.

Other Cabinet members who were immediately besieged by media questions about whether they were among top earners who will benefit by an average £10,000 from the rate being cut to 45p.

The Prime Minister is thought likely to be a 50p taxpayer. His £142,500 is £7,500 under the threshold and he declares income from renting out his home in Notting Hill since moving into Downing Street.

Mr Cameron’s spokesman refused to say whether he paid the 50p rate. His salary was “a matter of public record”, but as “a basic principle of government we do not talk about individuals’ tax arrangements”.

The Chancellor began renting out his west London family home after moving into a flat above No 10 last year. Rental income was only declared from July onwards, so it may not yet have been taxed. His father Sir Peter is the 17th baronet of Ballintaylor. The family firm, Osborne & Little, did not pay a dividend to shareholders in the last financial year, accounts at Companies House show, but £1,476,720 was paid out in 2010.

The guessing game began when Labour leader Ed Miliband challenged ministers to say whether they would benefit personally from the cut in the 50p rate.

Deputy Prime Minister Nick Clegg lists no outside income, but his wife Miriam is a highly paid lawyer and probably a 50p payer. Defence Secretary Philip Hammond’s wealth has been estimated at £7.5 million, including a controlling interest in a property company. Mayor Boris Johnson is easily a 50p taxpayer. He declares writing a column for the Daily Telegraph which, with his City Hall salary, makes £393,911.

Labour today claimed Mr Johnson would save £12,195.55 in tax under the new rate — and perhaps more.

The steps taken by the wealthy to avoid paying the 50p top rate of tax emerged today. They brought forward about £16 billion of income in 2009-10 but the earnings of those on more than £150,000 plummeted by 25 per cent the following year.

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