The rate of 45% above £125140 is a reduction from the 60% marginal rate on income between £100k and that figure, which is described as a tapering of the personal allowance, but is in effect just a bizarrely high rate of tax in that band of income. I imagine it is one reason for the popularity of huge EVs. Why not translate cash which would have been taxed at 60% into a big car taxed at close to zero?853 wrote: ↑23 Mar 2024, 1:32pmThe rate of tax for anyone earning over £125140 is 45 percent. What rate of tax do you propose, and what percentage of these people do you think would move to a different country with lower taxes if the 45 percent rate was increased?
https://www.gov.uk/income-tax-rates
And another thing: I don't understand why the graph of income vs tax is managed so crudely. No need for straight lines with various odd changes of slope. I'm all for nice smooth curves, of gradually increasing gradient.