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Additional Tax Rate

[əˈdɪʃənl tæks reɪt]



The Additional Tax Rate is the current highest Income Tax rate in the UK. This rate is 45% for the 2023/24 tax year and applies to income earned over £125,140.

More detail:

The Additional Tax Rate is the highest rate of Income Tax in the United Kingdom. For the 2023/24 Tax Year, the higher rate of 45% is paid on any income greater than £125,140. It is important to note that you only pay this higher rate on the income earned above the £125,140 threshold.

In the United Kingdom, Income Tax is the tax you must pay on income above your Personal Allowance. The standard Personal Allowance is £12,570 but this can be smaller if your income is over £100,000 a year, or greater if you Blind Person's Allowance or Marriage Allowance. For every £2 that your income is greater than £100,000 a year, your Personal Allowance goes down by £1.

In hopes of making the tax system fairer, higher income earners pay a higher marginal rate of tax. These marginal rates are called tax bands. For the 2023/24 Tax Year, Basic Rate (£12,571 - £50,270) is at 20%, Higher Rate (£50,271-£125,140) is at 40% and Additional Rate (£125,141+) is at 45%.

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