Investment Property News - Bueno Investments Limited

Labour MPs have voiced concern at Treasury plans to axe the 10p starting rate of income tax.

A total of 43 Labour MPs signed a motion describing the move as "damaging".

But Treasury minister Jane Kennedy defended the proposal, saying while she understood "a lot" of Labour Party members were "puzzled" at the move, it is a way to redirect help to low-earning families.

The measure, that was announced in Gordon Brown's final Budget as chancellor, comes into force when the new UK tax year begins this Sunday. He decided to reduce the basic rate of income tax from 22% to 20% at the same time as scrapping the lower 10% rate.

Ms Kennedy said even those who "lose out" because of this change "will have found that on average they are £505 a year, or £9.70 a week, better off overall, as a result of all of the changes that we've introduced since 1997".

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