Income Tax: Top Rate

Debate between Lord Newby and Baroness Neville-Rolfe

Tuesday 15th July 2014 Lords Chamber

[Lord Newby]

It is partly because their income has gone up, but proportionately it is because they are prepared to pay the tax. As noble Lords opposite know, and as the noble Lord, Lord Lawson, has just demonstrated, when you get to very high levels of tax and very wealthy people, whether they pay it or not is not simply a question of whether they get a demand from HMRC.

[Baroness Neville-Rolfe (Con)]

My Lords, will my noble friend also comment on the beneficial effect of the decline in corporation tax—a business tax—which has had the effect of bringing some of our best companies back to London?

[Lord Newby]

My Lords, the Government are very keen to ensure that the tax regime is internationally competitive. That is the effect of the corporation tax changes. As the noble Baroness said, it is having a number of beneficial effects.