Executive reward: The smart money

It is tough; but it is also fair,” were the words used by chancellor of the exchequer George Osborne to describe his emergency budget on 22 June. The country’s top earners, faced with a higher tax bill and fewer options to avoid paying it, may not agree.

There is currently a 50 per cent top rate of income tax for those earning over £150,000, the highest since the 1970s – put in place by the Brown government, admittedly, but not repealed by Osborne. There is also likely to be a revised annual tax-free allowance on pensions from April next year – the exact amount is as yet unclear, but it looks set to be reduced from £255,000 to between £30,000 and £45,000.