Tax

‘Stockbroker Belt’ has biggest income tax bills

The ‘Stockbroker Belt’ has dominated the UK’s top towns with the biggest income tax bills according to UHY Hacker Young.

Four of the Top Ten towns paying the highest amount of income tax on average are in Surrey. 

Esher and Walton residents, for example, paid the highest amount of income tax, with individuals paying an average of £20,600 in income tax last year, or 28% of their earnings. 

Other towns in the top ten list include Windsor, Beaconsfield, Sevenoaks and Guildford.

The constituency where individuals paid the lowest level of income tax on average was Sheffield, Brightside and Hillsborough, at an average of £2,180 or 10% of earnings. 

Individuals in the top ten tax towns now pay an average of £14,320 in income tax, however, marking a 20% increase from £11,911 five years ago. 

This is almost triple the amount of tax paid on average across the UK last year, which stands at £4,726. 

It comes as ‘Stockbroker Belt’ towns are popular amongst highly paid workers in the financial services and professional services sectors, due to their transport links to central London

Neela Chauhan, tax partner at UHY Hacker Young, said: “Towns in the traditional Stockbroker Belt remain the UK’s top income tax hotspots.”

“Esher’s popularity amongst celebrities and High Net Worth individuals has earned it the nickname ‘Britain’s Beverly Hills’. The area’s wealth and high average incomes means its position as the town paying the most income tax looks secure for years to come.” 

She added: “It seems likely that high earners may face even higher tax bills in the future – hikes to income tax may be looked at to help pay for coronavirus spending.”

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