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Camerons now quids-in thanks to cut in top rate

By Oliver Wright

David Cameron and his wife Samantha are likely to save thousands of pounds in tax as a result of George Osborne's decision to scrap the 50p rate of tax.

An analysis of their earnings suggests the Camerons' could gain up to £5,000 as a result of the controversial cut for those earning more than £150,000 a year.

At least five other Cabinet ministers are also thought to have personally benefited, along with Mayor of London Boris Johnson.

There were also questions asked about Mr Osborne's claim on Thursday that he will not be affected by the cut in the top rate of tax, which was 50p in the pound, but which he has cut to 45p.

However, Mr Cameron and his family are clear winners.

Although he earns £142,000 as Prime Minister, his salary is not his only income. The Camerons now rent out their £2.7m Notting Hill home, netting him around £50,000 to £70,000 a year, which would have to be added to his salary for tax purposes. Taken with his salary, that would give him a maximum income of £212,000, on which he would soon be paying 5% less on £62,000 — a saving of around £3,000 a year.

Samantha Cameron may also benefit. Before the last election she was thought to be earning around £400,000 working as creative director of the upmarket stationers Smythson. She has cut her commitments — but if she was earning half that amount she would still be saving around £2,500 from the tax cut.

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