Wealthiest Brits cut tax to 10 pc

Research has revealed that six per cent of the wealthiest people in Britain used tax reliefs to cut their tax bills to less than ten per cent.

While the scrapping of the 50 per cent tax is gradually being accepted as a positive move, this latest information, published by the Treasury, confirmed that a fairer tax system is needed in Britain.

In the financial year 2010-11 around three per cent of people who earned between £1 million and £5 million paid less than ten per cent tax. When those with an income of between £5 million and £10 million were assessed, the proportion increased to four per cent, and for those earning above £10 million, the percentage rose once again to six.

A Treasury spokesman commented on the data: “We're capping benefits and these figures clearly show why it's fair to cap tax reliefs for the wealthy as well.”

The news follows last month's decision by Chancellor George Osborne to cap the level of tax benefit permitted on charitable donations at 25 per cent of income. Conservatives have protested extensively at the change, as have charities, who claim that their donations will take a hit. However, Mr Osborne has stood by his decision, stating that it is a fair mode of operation.