Britain's income tax revenues rose to a record $234 billion in 2011, despite a sluggish economy, UPI cited tax authorities as saying. Income tax revenues reached a peak, as Britain has increased various tax rates to make up for falling revenues during the recession. Britain's value added tax or VAT, which is a sales tax, and duties from alcoholic beverages and tobacco, HM Revenue and Customs said. With the VAT rate increased to 20 percent in January of 2011, revenues from the tax rose from $107.2 billion to $130.1 billion. "Many people will be surprised to know that there has only been one year since 1997 when income tax receipts fell; that was 2009/2010," The Daily Telegraph quoted Grant Thorton accountant Mike Warburton as saying. "Taxes have risen while the economy has remained flat and that scenario is likely to be repeated in the current tax year, 2011/12," said Richard Mannion, a director of accountants Smith & Williamson, the newspaper reported Saturday. "The main factors are the increase in VAT and increases in income tax payable by the better-off, rather than an economic recovery. Total income tax set a new record in 2010/11 which presumably reflects the new 50 percent top rate and the loss of personal allowances for better off taxpayers under Pay As You Earn," he said. Since January 2011, high wager earners are taxed at 50 percent for incomes above $153,175 per year and below $176,151, the Telegraph said.
