The taper in brief
At the time of writing, the Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000. With the standard allowance, it is fully withdrawn at £125,140.
Why it matters
Within that band, each extra pound of income can lead to a higher effective rate of tax than the headline rates suggest, because you are also losing allowance. Many people are surprised by how steep it is.
Planning questions worth considering
- What counts towards adjusted net income, and which items may reduce it?
- Whether pension contributions are relevant to your position.
- Whether the timing of income or other items matters.
- How your income is likely to change over the next few years.
Check current rules
Rates, thresholds and rules differ between parts of the UK and change over time. Check current GOV.UK guidance, or talk to us about your own position.
This page gives general information only and is not personal advice. Rules, rates and thresholds change, so check current guidance before acting.