Posted on July 12, 2014

Something that we have mentioned several times previously in this blog, is the absurd situation affecting people earning between £100,000 and £120,000, due to the withdrawal of the personal allowance, they pay a marginal rate of tax of 60% on this income.

Thus on this additional £20,000 you earn, you get to keep £8,000. This has been highlighted by the Institute for Fiscal Studies (IFS) as being something that needs looking at. It does seem bizarre with the highest rate of personal tax in this country being 45%, that some people get income which is taxed at 60%.

Hats off to the IFS for highlighting this.