Government threw out ‘minimum tax’ for high earners

PROPOSALS to stop the country’s highest earners using tax schemes and incentives to slash their tax bills were thrown out before last year’s Budget because the Government feared the move would cost more than it saved.

Confidential briefing papers prepared for the Government’s top-level tax advisory group reveal plans for a so-called “minimum tax” were discussed late last year but senior civil servants rejected the idea.

The papers also show extra incentives to encourage Special Savings Incentive Account (SSIA) holders to put their lump sums into pensions were viewed as too generous.