50% top rate tax comes into force

The start of the new financial year heralds the launch of a new top rate of income tax of 50% for people with taxable incomes in excess of £150,000. This makes the income tax system more progressive at the top end but the move has attracted criticism from some business groups who claim that it will stifle enterprise and risk-taking in the economy and rise a brain drain effect. Will it lead to higher tax revenues or perhaps encourage greater tax avoidance and evasion?

Here are some links on the issue:

*BBC: New top-rate tax rate of 50% comes into force

*The Times: Millions prepare to count the cost of new tax regime

*Daily Mail: 50p tax increase could hit UK sporting events

*Joe Lynam provides this BBC news video report