Anorak News | George Osborne doesn’t pay tippy toppy rate tax

George Osborne doesn’t pay tippy toppy rate tax

by | 23rd, March 2012

GEORGE Osborne doesn’t pay the top rate of tax. Sounds about right.

His salary puts him close to it, yes. And then on top he’s got rental income plus possible dividends from shares in the family company (which, amusingly, I was offered a job in years ago).

The rental income will be pretty much offset by the mortgage interest relief he gets. No, you don’t get this on buying your own house any more, not if you live in it. But it’s obviously a business if you’re renting it out so you do indeed get to count the interest paid as a cost of doing business. There’s also the maintenance allowance. If I remember my own tax returns that’s 2% of capital value or something like that.

Assuming that you’ve got a largish mortgage and use all of your entirely legitimate allowances it’s actually quite hard to end up owing tax on a rental property.

The family company hasn’t paid a divi since 2010 and the shares are in trust anyway so even if it had not entirely certain (depends on how the trust was set up and when) that income tax would have been due from Osborne anyway.

In the end, his taxable income doesn’t go over 150k. Thus he doesn’t pay he income tax which applies to over 150k taxable incomes.

Not really a great mystery methinks.

Posted: 23rd, March 2012 | In: Money Comments (2) | TrackBack | Permalink