UK tax system is ‘very progressive’, says Sunak

Jun 10, 2023 at 3:06 AM

ishi Sunak has insisted the UK’s tax system is “very progressive” as he disregarded questions on his personal monetary affairs.

The Prime Minister paid an efficient fee of round 22% on his substantial revenue as a result of the bulk got here from capital features quite than earnings.

But Mr Sunak insisted the tax system was honest for decrease earners, lots of whom had been taken out of tax because of threshold will increase because the Tories got here to energy in 2022.

The Prime Minister made practically £2 million via revenue and capital features in 2021/22.

It’s a really progressive tax system that we’ve within the UK

His revenue from dividends was £172,415, and from capital features was £1.6 million.

For that very same monetary yr, he paid £432,493 in tax. Asked if the 22% efficient fee on his revenue was honest, Mr Sunak advised reporters: “Well, actually, what we’ve done is taken lots of those on the lowest pay out of paying any tax at all, because of the threshold increases, both for income tax and National Insurance.

“So if you look at real earnings: for those on the lowest pay over the last decade, what you’ve seen is that they’ve grown almost by 25%, in real terms after inflation over that period.

“So actually where our tax policy has been particularly focused is on those on the lowest incomes, and you can see that in their take-home pay over the past decade, since 2010.”