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Official accounts released on Friday unveiled that Rishi Sunak earned over £2.2 million last year, with an effective tax rate of 23 per cent, as confirmed by Downing Street.
Official accounts released on Friday unveiled that Rishi Sunak earned over £2.2 million last year, with an effective tax rate of 23 per cent, as confirmed by Downing Street.
The Prime Minister's tax return, made public by Downing Street, disclosed that he paid slightly over £500,000 in UK taxes during the fiscal year 2022-23. Notably, a significant portion of his earnings, amounting to £1.8 million, was categorized as capital gains, subject to a lower tax rate of 20 per cent.
In contrast, an individual earning £100,000 annually would typically face an effective tax rate of 33 per cent after income tax and national insurance deductions.
Sunak's tax filings have drawn attention to disparities in the tax rates applied to different income brackets, with critics highlighting concerns about fairness and equity in the tax system. The revelation of his earnings and tax contributions underscores broader discussions about income inequality and the progressive taxation system in the United Kingdom.
The Prime Minister's tax return provides transparency into his financial affairs and tax liabilities, offering insight into the complexities of high-income earners' tax structures and the strategies employed to optimize tax obligations.
As debates continue about tax reform and fiscal policy, the disclosure of Sunak's tax details prompts reflection on the principles of taxation, redistribution of wealth, and the role of government in ensuring a fair and equitable society.
The release of such information contributes to public discourse on accountability and transparency in governance, reinforcing the importance of transparency measures in promoting trust and accountability in political leadership.
