Table 3BandsBand NameRate (%)Over £12,570* - £14,732Starter19Over £14,732 - £25,668Basic20Over £25,668 - £43,662Intermediate21Over £43,662 - £125,140**Higher42Above £125,140**Top47* Assumes individuals are in receipt of the standard UK personal allowance (£12,570 in 2023-24)
** Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000
The SFC explained that “the combination of inflation with fixed tax thresholds leads to more people moving into higher tax bands, known as ‘fiscal drag’ and tax revenues rise faster than nominal earnings”.15 It forecasts these income tax policy changes to raise an additional £129 million of income tax revenue in 2023-24, after taking account...