Time to share creative thinking on rewarding high earners

HR teams should be thinking again about their remuneration strategies for high earners with a renewed emphasis on capital payments. With income tax increasing to 50 per cent for those earning over £150,000 from 6 April 2010, there was widespread speculation that the emergency budget on 22 June 2010 would increase capital gains tax (CGT) to similar levels. So it was a welcome surprise for many that the CGT rate for those paying income tax above the basic rate was only increased to 28 per cent. This still leaves clear water between capital gains taxation rates and tax on income.