High earners must sign up to tax cap for five years

High earners will have to sign up to a five-year tax agreement under new plans unveiled in this year’s Budget.

The current income tax cap for people whose income exceeds £600,000 a year is a maximum of £120,0000.

However, under the new proposals anyone who wants to take advantage of this must sign up to it for five years – at a cost of £600,000.

Treasury Minister Eddie Teare says it will give government more certainty of its income: