One of the biggest announcements made by the Chancellor was the lowering of the additional-rate tax threshold from £150,000 a year to £125,140 as of 6 April 2023.
The additional-rate threshold will be applied to anyone earning more than £125,140 a year in England, Wales and Northern Ireland. The Government will legislate this change in the Autumn finance bill 2022.
It’s predicted the change to the additional-rate threshold will mean 250,000 more taxpayers will now find themselves paying 45%.
This announcement is in stark contrast to Hunt’s predecessor’s plans to scrap the additional tax rate altogether.