The UK has taxed its earners more favourably than other Western European economies since 2012, announced Scottish independent accountancy firm Campbell Dallas LLP.
A survey by Campbell Dallas’ membership network UHY revealed that individuals earning $25k, $250k and $1.5 million were more than $5k, $25k and $115k better off than the worst performing Western European nations at each level.
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The research also revealed that the global average take home pay on earnings of $25k was around $20.2k. Western European nations were better off with an average of just over $20.5k, but the UK showed it was more generous than the likes of France, Italy and Spain with a figure of more than $22k. The harshest tax regime at this level was Croatia with a take home pay of $16.8k.
Ian Williams, chairman at Campbell Dallas LLP, said: "The UK is one of a handful of economies to have adapted its tax regime following the financial crisis. It has dramatically reduced or withdrawn top rate tax bands. High level taxpayers earning $1.5m in the UK were $63.6k better off in 2014 than two years ago, following the abolition of the 50p tax rate last year.
"The message that high taxes on top earners are uncompetitive has made an impact in Western Europe and governments have taken steps to reduce the rates on top earners."
"However, the gap between how heavily an individual is taxed in Western Europe compared to other developed economies remains striking, especially at the $250k level. As the global economy improves and new job opportunities open up, Western European governments need to be aware of the risk of a brain drain of skilled professionals."
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By GlobalDataCampbell Dallas explained that Eastern European and emerging economies continue to offer the most generous tax regimes to higher earners. In Dubai and Russia flat rate, or no, taxation means that all taxpayers take home 100 per cent and 87 per cent of their pay respectively, while taxpayers earning $1.5million in Slovakia, the Czech Republic and Jamaica all keep more than 70 per cent of pay.
