“There have been a multitude of changes to the tax and benefits systems over the period 2010 to 2015."
This makes any comparison of who is better or worse off extremely difficult to measure.
“From a tax viewpoint, basic rate taxpayers have benefited in this period from the increase in the personal allowance. Those on incomes in excess of £42,000 have been squeezed by a fall in the higher rate tax band, with families also losing out due to the withdrawal of child benefit. Those earning over £100,000 have been hit again by the withdrawal of the personal allowance. However, additional rate taxpayers have benefited in this period from a reduction in the additional rate of tax from 50% to 45%, such that the very highest of earners are better off."
“Overall then, the clear winners then are the low income working families but also the top earners. At the other end, the losers are the ‘squeezed middle’.”
- ENDS -
Jessica Liebmann, KPMG Corporate Communications
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.