Income Tax: Tax Thresholds
The question
To ask the Chancellor of the Exchequer, what estimate she has made of the number of additional taxpayers who will pay an effective marginal rate of income tax of 60% because their income is between £100,000 to £125,140 due to the freezing of income tax thresholds before 2031.
Answered by Dan Tomlinson
The Government recognises that taxpayers earning between £100,000 and £125,140 face a higher marginal tax rate due to the tapering of the tax-free Personal Allowance, introduced in 2010-11.
The number of people forecast to pay tax by marginal rate can be found in the OBR’s March 2026 Economic and fiscal outlook – detailed forecast tables: receipts, linked below.
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028 and this is reflected in the numbers.
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