Wednesday 30th January 2008
Britons are collectively paying off a £13 billion bill to make up for tax avoidance among the super-rich, the Trades Union Congress (TUC) claims.
Data obtained by the TUC and published by the Observer shows the figure represents the impact on the UKs communal tax bill of rules such as income tax relief for non-domiciled individuals in the UK.
The publication explains that these exemptions apply to those with overseas connections and add £3.8 billion to the total which must be paid - about 30 per cent of the overall sum.
Giving income to a partner or shielding it in the guise of a limited company costs the country a further £3.2 billion, while the remaining £6 billion arises from legal loopholes and careful planning.
Vince Cable, Treasury spokesperson for the Liberal Democrats, tells the Observer that many such loopholes have been created as a consequence of decisions made by the current Labour government.
"By setting capital gains tax at 18 per cent when the top rate of income tax is 40 per cent, theyve allowed potential for clever accountants to turn income into capital," he argues.
The publication adds that the £13 billion figure is enough to raise the nations old-age pensions by up to a fifth.
Brendan Barber, general secretary of the TUC, observes that there has "hardly been any debate" as to whether the taxation regime in the UK is fair in recent years.
He tells the Observer: "A wise government would recognise the shift in public mood when they see police officers marching against a decision that a modest pay rise was unaffordable when it looks like tax has become optional for a small group of the super-rich."
The TUC recently called for more financial assistance to be given to apprentices, claiming that some in the UK are working for as little as £1.54 an hour.
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