Autumn Statement 2022: 45% tax will start at £125k

The threshold for the additional rate of income tax will be reduced to pull more top earners into the 45p tax bracket

The Autumn Statement reduces the income tax additional rate threshold from £150,000 to £125,140, increasing taxes for those on high incomes from 6 April 2023. The threshold change will raise £420m in 2023-24, rising to £790m in 2024-25. Chancellor Jeremy Hunt said: ‘We have tried to be fair by following two broad principles, by asking those with more to pay more. I have not raised headline rates of tax. ‘This means that those earning £150,000 or more will pay just over £1,200 more a year.’ At the same time, the thresholds for base rate and higher rate taxpayers will be frozen until 2028, a further two years added to current plans which will drag more people into higher rates of tax.