From the IFS report:
Partnership and dividend income are taxed at lower rates than normal salaries – a policy choice to tax the incomes of business owners at lower rates than employees, which therefore benefits a significant share of the top 1%.
If you add corporation tax and income tax and NI together, are dividends actually taxed less than labour incomes? There’s been so much change in rates and stuff that I no longer know….
Anyone want to do a calculation (perhaps with and without NI?) on a £1 million income taxed as partnership income, labour income and dividends?
Oh, OK, never mind. They do the calculation in the report.