Lowering of the Additional Rate Threshold
This tax information and impact note is about the reduction to the additional rate threshold from £150,000 to £125,140 from 6 April 2023.
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This measure reduces the additional rate from £150,000 to £125,140 which is the point at which individuals do not receive any Personal Allowance.
Changes to the Income Tax additional rate threshold will apply to the Income Tax rates, which apply to non-savings, non-dividend income, for taxpayers in England, Wales and Northern Ireland. This will also apply to the savings rates, dividend rates and the default rates which apply for taxpayers across the UK.
This measure does not apply to non-savings, non-dividend income of Scottish taxpayers, as the Scottish Parliament sets the Income Tax rates and thresholds for Scotland.
This measure will come into effect from 6 April 2023.