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Here’s a comprehensive table summarizing all you need to know about high income tax:
High Income Tax: Key Information
| Aspect | Details |
|---|---|
| UK Tax Bands (2024/25) | • Basic rate (20%): £12,571 to £50,270 • Higher rate (40%): £50,271 to £125,140 • Additional rate (45%): Over £125,1411 |
| Personal Allowance | • £12,570 (standard) • Reduces by £1 for every £2 earned over £100,000 • Completely lost at £125,14013 |
| 60% Tax Trap | • Applies to income between £100,000 and £125,140 • Due to loss of Personal Allowance3 |
| Dividend Tax Rates | • Basic rate: 8.75% • Higher rate: 33.75% • Additional rate: 39.35%4 |
| Dividend Allowance | £500 (2024/25)4 |
| Countries with Highest Rates | 1. Portugal (61.3%) 2. Slovenia (61.1%) 3. Belgium (60.2%) 4. Finland (57.5%) 5. Sweden (57.0%)5 |
| UK Income Tax Statistics | • 37.4 million Income Tax payers projected for 2024/25 • 6.3 million higher rate payers (16.9% of total) • 1.13 million additional rate payers (3.0% of total)6 |
| Top 1% of UK Taxpayers | • Receive 13.3% of total income • Pay 28.2% of total Income Tax (projected for 2024/25)6 |
| Average Tax Rates (2024/25) | • Basic rate payers: 10.1% • Higher rate payers: 20.7% • Additional rate payers: 37.6%6 |
| Tax Efficiency Strategies | • Pension contributions • ISA investments • Charitable donations • Capital gains tax planning3 |
This table provides a comprehensive overview of high income tax information, including UK tax bands, personal allowance rules, international comparisons, and key statistics on high-income taxpayers in the UK. It also includes information on the so-called “60% tax trap” and strategies for tax efficiency.