Keir Starmer’s tax bill reveals he sold field for £276k
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Sir Keir Starmer paid less than a quarter of his income in tax last year.
The Labour leader paid 24.5 per cent of his salary and other income in tax, compared with the 23 per cent that Rishi Sunak paid.
Sir Keir paid income tax and national insurance on his salary, as well as capital gains tax on a field he sold.
His salary as leader of the opposition was £128,291 and he paid 35 per cent of that in tax.
He also sold a field worth £275,739 and paid 20 per cent capital gains tax on this.
Labour pointed out this was a one-off payment rather than the annual capital gains tax the Prime Minister pays.
Overall, Sir Keir paid just over £99,000 on his £405,000 income, which is 24.5 per cent.
A person earning £100,000 a year would typically pay an effective rate of 33 per cent once income tax and national insurance had been levied.
Overall bill kept low
Last week, it was revealed that Mr Sunak earned more than £2.2 million last year but paid an effective tax rate of just 23 per cent, according to official accounts released last night.
Downing Street published the Prime Minister’s tax return, which showed that in total he paid just over £500,000 in UK taxes in 2022-23.
His overall bill was kept low by the fact that £1.8 million of his earnings was put through as capital gains, which meant it was taxed at a lower 20 per cent rate.
Tax justice campaigners said that as a result Mr Sunak paid the same effective rate as somebody on £50,000, showing the system was “broken”.
Meanwhile, a person earning £100,000 a year would typically pay an effective rate of 33 per cent once income tax and national insurance had been levied.
Capital gains tax is levied on the sale of assets that have increased in value.
It covers shares, business assets and personal possessions worth over £6,000, as well as properties that are not your main home.
US-based investment fund
The Prime Minister’s tax return, prepared by accountants Evelyn Partners, showed that he earned £2.23 million in the financial year 2022-23.
His income was split, with £433,000 being subject to income tax, charged at an effective rate of 38 per cent, and the rest coming under capital gains.
The £1.8 million that he declared in capital gains was up from £1.6 million the previous year.
All of those earnings were derived from the proceeds of a US-based investment fund that is listed as a blind trust, according to the return.
