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UK's Kwarteng to scrap top rate of income tax, cut basic rate from April

UK's Kwarteng to scrap top rate of income tax, cut basic rate from April
UK's Kwarteng to scrap top rate of income tax, cut basic rate from April   -   Copyright  Thomson Reuters 2022
By Reuters

LONDON – Britain’s new finance minister Kwasi Kwarteng said on Friday he would scrap the country’s top rate of income tax and cut the basic rate next April – a year earlier than expected – to spur economic growth.

Kwarteng said from April 2023 Britain would have a single higher rate of income tax of 40 per cent, scrapping an additional rate of 45% on income over 150,000 pounds ($168,000).

He also said he would cut the basic rate of income tax to 19 pence in April 2023, one year earlier than expected.

“That means a tax cut for over 31 million people in just a few months’ time,” he told parliament. “That means we will have one of the most competitive and pro-growth income tax systems in the world.”

($1 = 0.8925 pounds)