Top 1% pay one third of all taxes

Top 1% now pay a third of income taxThe top 1% of earners in the UK now account for more than a third of income tax paid to the government while 42% of adults paid no income tax at all, according to research by the Institute for Fiscal Studies. The think-tank said that above-inflation increases in the personal allowance to £12,500 a year meant 42% of adults paid no income tax. The IFS said the increase in the proportion of tax paid by the highest earners was not driven by a rising income share at the top but rather by income tax rises for high-income individuals and increases in the personal allowance that have reduced or eliminated income tax for those with lower incomes. A separate report from the Resolution Foundation found that at 34.4% of GDP, tax revenues have not been as consistently as high in Britain since after the Second World War. The centre-left think-tank also said families and businesses could pay £60bn more in tax under Labour's plans compared with those of the Conservatives.