Government to take an extra £50k from top City partners
Top-earning City partners look set to see their tax bills rise by around £50,000 as a result of measures detailed in Monday's (24 November) pre-budget report. The new 45% higher tax rate for earnings above £150,000, combined with the 0.5% increase in national insurance planned from April 2011, means a partner earning £1m a year will pay around £49,600 each year in additional tax. The extra tax hike will hit many of the UK's leading lawyers as seven of the top 10 UK firms reported average profits per equity partner of more than £1m during the last financial year. Lower down the ranks the increase equates to around £35,000 extra tax for partners on salaries of £750,000, while those pulling in £500,000 will pay an extra £22,000.
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