Sir, In his fascinating article “ The corporate aristocracy holding out against fiscal revolution” (March 3), John Plender might also have considered whether high marginal rates of income tax militate against distribution and in favour of “hoarding”.

For the record, every £100 of profit that is owned by the shareholders of Jupiter Asset Management is taxed three times, through corporate tax, income tax on dividends and capital gains tax on retained earnings: a composite rate last year of 45 per cent, coincidentally, the same level as the top rate. For the current year, with the payment of special dividends, the composite rate for a top rate taxpayer rises to 52 per cent on the Jupiter profit stream.

Ian McVeigh

Fund Management Director,


London SW1, UK


Letter in response to this letter:

Income tax or CGT, but not both / From Roger Clark

Earnings stream does indeed attract both taxes / From Ian McVeigh

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