Services: Personal Allowance Changes

60% marginal rate of tax on income between £100,000 and £113,000

At the same time, for those with incomes over £100,000 a year, the personal allowance will be restricted. At present, the personal allowance is relieved at the marginal rate, so it is worth 40% of £6,475, i.e. £2,590.

The amount of the allowance will be reduced by £1 for every £2 of income above £100,000, until is falls to zero. The effect of this will be a marginal rate of income tax of 60% in the band of approximately £100,000 - £113,000, within which the allowance is being withdrawn

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