Commenting on the winners and losers since 2010, Jo Bateson, Tax Partner at KPMG in the UK, said:
“There have been a multitude of changes to the tax and benefits systems over the period 2010 to 2015.
This makes any comparison of who is better or worse off extremely difficult to measure.
“From a tax viewpoint, basic rate taxpayers have benefited in this period from the increase in the personal allowance. Those on incomes in excess of £42,000 have been squeezed by a fall in the higher rate tax band, with families also losing out due to the withdrawal of child benefit. Those earning over £100,000 have been hit again by the withdrawal of the personal allowance. However, additional rate taxpayers have benefited in this period from a reduction in the additional rate of tax from 50% to 45%, such that the very highest of earners are better off.
“Overall then, the clear winners then are the low income working families but also the top earners. At the other end, the losers are the ‘squeezed middle’.”
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