Income Tax: Tax Thresholds
(asked on 10th April 2026) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of people who have reduced their taxable income to avoid the tapered withdrawal of the personal allowance for income tax.
The Government recognises that taxpayers earning between £100,000 and £125,140 face a higher marginal tax rate due to the tapering of the tax-free Personal Allowance, introduced in 2010-11.
The number of people forecast to pay tax by marginal rate can be found in the OBR’s March 2026 Economic and fiscal outlook – detailed forecast tables: receipts, linked below.
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028 and this is reflected in the numbers.