Shorter Reads

Johnson proposes £3,000 tax cut for higher earners

1 minute read

Published 10 June 2019

Authors

Aidan Grant
Partner
Visit profile
Read more from Aidan

Key information

Johnson’s announcement of his proposed tax cut is certainly grabbing the headlines but it is worth pausing to reflect on the ways it might impact professional advisors and their clients.

Journalists quick out of the gates this morning have estimated that raising the threshold at which 40% income tax is paid from £50,000 to £80,000 will save an individual earning £80,000 per year around £3,000. Indeed, for pensioners the cut could be even more beneficial, with estimated savings of up to £6,000 due to the fact that pensioners will not be liable for the increase in National Insurance which is feted to accompany the cut to help pay for it.

With more take-home pay in their pockets, tax payers may feel less inclined to take advantage of tax mitigation opportunities such as Gift Aid or maximising their pension contributions.

One can be confident that Mr Johnson and his team have rigorously focus-grouped the proposed plan, but it is worth noting that the tax cut is not being achieved by lowering the income tax rates, which Mr Johnson’s rival for the Conservative leadership Dominic Raab suggested only last month, but instead raising the threshold at which higher rate income tax is paid.

https://www.bbc.co.uk/news/uk-politics-48577579

Back to Insights

Shorter Reads

Johnson proposes £3,000 tax cut for higher earners

Published 10 June 2019

Associated sectors / services

Private Wealth
Tax & Estate Planning
Trusts

Authors

Aidan Grant
Partner
Read more from Aidan

Johnson’s announcement of his proposed tax cut is certainly grabbing the headlines but it is worth pausing to reflect on the ways it might impact professional advisors and their clients.

With more take-home pay in their pockets, tax payers may feel less inclined to take advantage of tax mitigation opportunities such as Gift Aid or maximising their pension contributions.

https://www.bbc.co.uk/news/uk-politics-48577579

Associated sectors / services

Private Wealth
Tax & Estate Planning
Trusts

Authors

Aidan Grant
Partner
Read more from Aidan

Need some more information? Make an enquiry below.

Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

Subscribe to our articles

Message us on WhatsApp (calling not available)

Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

I accept Close

Latest news:

Collyer Bristow welcomes leading Family lawyer, Charmaine Hast

ExpandNeed some help?Toggle

If it's urgent, please
call +44 20 7242 7363

Get in touch

Get in touch using our form below.

Business

Dispute Resolution

Private Wealth

Sectors

For individuals and families
Family offices
For businesses
Financial services
Private equity
Manufacturing & logistics
International services
Our international reach
- Business & Banking Litigation Network

Hot Topics

For individuals and families
Lifetime gifting
Digitalisation
For businesses
Flexible working
Digitalisation

Insights

Johnson proposes £3,000 tax cut for higher earners

Authors

Aidan Grant

Share

Key information

Longer ReadsDESTINATION UK: Relocation advice for HNW individuals, business owners, entrepreneurs and families

Shorter ReadsElection 2024: Initial comments on potential tax changes

Shorter ReadsKeir Starmer launches Labour manifesto

Shorter ReadsStay or go? UK opposition’s tax hit on non-doms likely to encourage exodus

Shorter ReadsCB team comments on the Chancellor’s 2024 Spring Budget

NewsCollyer Bristow wins ‘Law Firm of the Year’ at CityWealth Magic Circle Awards

Shorter ReadsCan I make cash gifts under a power of attorney arrangement?

Shorter ReadsHow will the Autumn Statement impact inheritance tax

Longer ReadsThe Middle Classes and the Autumn Budget Statement: Fallback, Fail-Safe, Cash-Cow, Taxpayers

Longer ReadsTax Justice UK proposes wealth tax to raise £37 billion

Longer ReadsThe importance of trusts and ringfencing assets

Shorter ReadsESG credentials key to attracting private investments, with ethical and moral concerns a deciding factor

Shorter ReadsSpring Budget Statement 2022

Shorter ReadsThoughts on new measures to tackle “dirty money” in the UK

Shorter ReadsHICBC: January 2022 update – 2017/2018 tax position

Shorter ReadsGifts to Disabled and Vulnerable People

Shorter ReadsCan I gift my holiday home or rental property to my children

Shorter ReadsWhat gifting options do non-domiciliaries have?

Shorter ReadsGifting up a Generation

Shorter ReadsGifts with international elements

Shorter ReadsWhat are the tax implications of being the Bank of Mum and Dad?

Shorter ReadsUS tax changes could be imminent

Shorter ReadsThe Giving Pledge

Shorter ReadsCan I give my home to my children (and still live in it)?

Shorter ReadsHow to efficiently gift business assets

Shorter ReadsUS/UK giving

Shorter ReadsGifts and Lasting Powers of Attorney (“LPAs”)

Longer ReadsCollyer Bristow Annotations on the discovery assessments policy paper

Shorter ReadsNormal expenditure out of income

Shorter ReadsGifting in the Arts (CGS v AIL)

Shorter ReadsHow can I help my children buy a house?

Shorter ReadsHow should I approach charitable giving?

NewsCollyer Bristow named as one of the 2021 eprivateclient Top Law Firms

Shorter ReadsCyber criminals love lockdown

Shorter ReadsSecond home owners beware!

Shorter ReadsHMRC estate administration investigations

Shorter ReadsAre Google’s cookies crumbling?

Shorter ReadsDomicile Enquiries – Tax Tribunal has jurisdiction to determine domicile in closure notice applications: Henkes v HMRC

Shorter ReadsCovid-19, Travel Restrictions, and Tax Residence of Companies: OECD Guidance Released

Shorter ReadsRetrospective Anti-Forestalling and the 2020 Budget Entrepreneurs Relief Changes: What Price the Rule of Law?

Shorter ReadsPrime Minister’s remarks increase Entrepreneurs Relief concerns

Shorter ReadsPre-Budget CGT Planning: Time to Act for Entrepreneurs and Business Owners

Shorter ReadsGeneral Election: party manifestos confirm coming CGT Entrepreneurs Relief changes

Shorter ReadsCalls to Abolish CGT Entrepreneurs Relief – Should Business Owners Be Worried?

Shorter ReadsWhy apathy isn’t good enough when it comes to Wills

Shorter ReadsAre non-doms really leaving the UK?

Shorter ReadsShould inheritance tax be simplified?

Shorter ReadsWhich parent died first and why does it matter?

Shorter Reads£15bn lost behind the sofa

Shorter ReadsUK Supreme Court considers ‘the ordinary reader of a Facebook Post’ in Defamation claim

Shorter ReadsBeing born a royal is hard enough – try being a US taxpayer too

Shorter ReadsOne in a million? No, you’re only one in five.

Shorter ReadsAre robots writing your will?

Shorter ReadsWhenever, Wherever… no Shakira, you need to keep track.

Shorter ReadsWhy giving money to UKIP might give you a large tax bill

Shorter ReadsWhy you will no longer need to swear when visiting your solicitor

Shorter ReadsGovernment to push ahead with 3,770% increase in probate fees for the wealthiest estates

Shorter ReadsLeave your estate to loved ones rather than up to chance

Shorter ReadsWhy the IHT nil rate band may be scant comfort for homeowners in the South East

Shorter ReadsPension transfers may result in Inheritance Tax Charge

Shorter ReadsCareful estate planning can save you a princely sum

Shorter ReadsDon’t e(stop) til you get enough

Shorter ReadsEstate planning need not be taxing

Shorter ReadsHMRC home in on Airbnb tax affairs

Shorter ReadsSister (P)act 2: Back in the Co(habit)ation

Shorter ReadsHMRC plots a route to CGT success

Shorter ReadsBit-coining it in: HMRC waiting for cryptocurrency windfall?

Shorter ReadsLawyer legacy leaves large litigation liability

Shorter ReadsFranklin my dear, I don’t give an (estate) plan

Shorter ReadsBetter to be pregnant this year rather than next?

Shorter ReadsExecutors may not realise they have an Income Tax liability

Shorter ReadsUK Property held through a company may face increased scrutiny

Shorter ReadsWide ranging tax reforms suggested by the Lib Dems

Shorter ReadsHMRC error may mean over-payment of tax by non-resident trustees

Shorter ReadsJustice for the few

Longer Reads
DESTINATION UK: Relocation advice for HNW individuals, business owners, entrepreneurs and families

Shorter Reads
Election 2024: Initial comments on potential tax changes

Shorter Reads
Keir Starmer launches Labour manifesto

Shorter Reads
Stay or go? UK opposition’s tax hit on non-doms likely to encourage exodus

Shorter Reads
CB team comments on the Chancellor’s 2024 Spring Budget

News
Collyer Bristow wins ‘Law Firm of the Year’ at CityWealth Magic Circle Awards

Shorter Reads
Can I make cash gifts under a power of attorney arrangement?

Shorter Reads
How will the Autumn Statement impact inheritance tax

Longer Reads
The Middle Classes and the Autumn Budget Statement: Fallback, Fail-Safe, Cash-Cow, Taxpayers

Longer Reads
Tax Justice UK proposes wealth tax to raise £37 billion

Longer Reads
The importance of trusts and ringfencing assets

Shorter Reads
ESG credentials key to attracting private investments, with ethical and moral concerns a deciding factor

Shorter Reads
Spring Budget Statement 2022

Shorter Reads
Thoughts on new measures to tackle “dirty money” in the UK

Shorter Reads
HICBC: January 2022 update – 2017/2018 tax position

Shorter Reads
Gifts to Disabled and Vulnerable People

Shorter Reads
Can I gift my holiday home or rental property to my children

Shorter Reads
What gifting options do non-domiciliaries have?

Shorter Reads
Gifting up a Generation

Shorter Reads
Gifts with international elements

Shorter Reads
What are the tax implications of being the Bank of Mum and Dad?

Shorter Reads
US tax changes could be imminent

Shorter Reads
The Giving Pledge

Shorter Reads
Can I give my home to my children (and still live in it)?

Shorter Reads
How to efficiently gift business assets

Shorter Reads
US/UK giving

Shorter Reads
Gifts and Lasting Powers of Attorney (“LPAs”)

Longer Reads
Collyer Bristow Annotations on the discovery assessments policy paper

Shorter Reads
Normal expenditure out of income

Shorter Reads
Gifting in the Arts (CGS v AIL)

Shorter Reads
How can I help my children buy a house?

Shorter Reads
How should I approach charitable giving?

News
Collyer Bristow named as one of the 2021 eprivateclient Top Law Firms

Shorter Reads
Cyber criminals love lockdown

Shorter Reads
Second home owners beware!

Shorter Reads
HMRC estate administration investigations

Shorter Reads
Are Google’s cookies crumbling?

Shorter Reads
Domicile Enquiries – Tax Tribunal has jurisdiction to determine domicile in closure notice applications: Henkes v HMRC

Shorter Reads
Covid-19, Travel Restrictions, and Tax Residence of Companies: OECD Guidance Released

Shorter Reads
Retrospective Anti-Forestalling and the 2020 Budget Entrepreneurs Relief Changes: What Price the Rule of Law?

Shorter Reads
Prime Minister’s remarks increase Entrepreneurs Relief concerns

Shorter Reads
Pre-Budget CGT Planning: Time to Act for Entrepreneurs and Business Owners

Shorter Reads
General Election: party manifestos confirm coming CGT Entrepreneurs Relief changes

Shorter Reads
Calls to Abolish CGT Entrepreneurs Relief – Should Business Owners Be Worried?

Shorter Reads
Why apathy isn’t good enough when it comes to Wills

Shorter Reads
Are non-doms really leaving the UK?

Shorter Reads
Should inheritance tax be simplified?

Shorter Reads
Which parent died first and why does it matter?

Shorter Reads
£15bn lost behind the sofa

Shorter Reads
UK Supreme Court considers ‘the ordinary reader of a Facebook Post’ in Defamation claim

Shorter Reads
Being born a royal is hard enough – try being a US taxpayer too

Shorter Reads
One in a million? No, you’re only one in five.

Shorter Reads
Are robots writing your will?

Shorter Reads
Whenever, Wherever… no Shakira, you need to keep track.

Shorter Reads
Why giving money to UKIP might give you a large tax bill

Shorter Reads
Why you will no longer need to swear when visiting your solicitor

Shorter Reads
Government to push ahead with 3,770% increase in probate fees for the wealthiest estates

Shorter Reads
Leave your estate to loved ones rather than up to chance

Shorter Reads
Why the IHT nil rate band may be scant comfort for homeowners in the South East

Shorter Reads
Pension transfers may result in Inheritance Tax Charge

Shorter Reads
Careful estate planning can save you a princely sum

Shorter Reads
Don’t e(stop) til you get enough

Shorter Reads
Estate planning need not be taxing

Shorter Reads
HMRC home in on Airbnb tax affairs

Shorter Reads
Sister (P)act 2: Back in the Co(habit)ation

Shorter Reads
HMRC plots a route to CGT success

Shorter Reads
Bit-coining it in: HMRC waiting for cryptocurrency windfall?

Shorter Reads
Lawyer legacy leaves large litigation liability

Shorter Reads
Franklin my dear, I don’t give an (estate) plan

Shorter Reads
Better to be pregnant this year rather than next?

Shorter Reads
Executors may not realise they have an Income Tax liability

Shorter Reads
UK Property held through a company may face increased scrutiny

Shorter Reads
Wide ranging tax reforms suggested by the Lib Dems

Shorter Reads
HMRC error may mean over-payment of tax by non-resident trustees

Shorter Reads
Justice for the few

Shorter Reads
The assault on secrecy/privacy marches on

Shorter Reads
Law Commission to Review Law on Surrogacy

Shorter Reads
Socialite Tara Palmer-Tomkinson left her fortune to children she never had

Shorter Reads
Keep Britain Tidy

Shorter Reads
Special treatment – how can I get a “quickie divorce” like Billie?