2023 Income Tax

2023 Income Tax

Income tax additional rate threshold has reduced from £150,000 to £125,140 from 6 April 2023, additional tax rate is 45%. Therefore, those earning £150,000 or more will pay just over £1,200 more in tax a year.

Those with income between £125, 140 and £150,000 will now be paying an additional rate of 5% as well as losing their eligibility for the £500 personal savings allowance. Resulting in extra tax on savings income of up to £225.

Around 250,000 more people will be paying the top rate of tax. The good news is there are still ways you can reduce the tax you pay, from investing in pensions and ISAs to crystallising capital gains liabilities NOW rather than next year.