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Income Tax

Question for Treasury

UIN 137456, tabled on 24 April 2018

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the number of taxpayers who are paying an effective marginal rate of tax on income in excess of (a) 40, (b) 50, (c) 60 and (d) 70 per cent once account has been taken of tax arrangements relating to pension contributions in the most recent tax year for which data is available.

Answered on

27 April 2018

HMRC publishes statistics on income tax liabilities, including by marginal income tax rates. These can be found here:

https://www.gov.uk/government/statistics/income-tax-liabilities-by-taxpayers-marginal-rate

The Reduced (tapered) pensions annual allowance was introduced in 2016-17 for individuals with income of over £150,000 including the value of any pensions contributions.

HMRC does not hold information on the effective marginal rate of tax of individuals who have been subject to the Reduced (tapered) pensions annual allowance, as the effective rate an individual faces depends on numerous other factors.

The Tax Impact and Information Note for this measure, published in 2015, detailed that around 300,000 pension savers could be affected by this measure:

https://www.gov.uk/government/publications/pensions-tapered-annual-allowance/pensions-tapered-annual-allowance

Answered by

Treasury
Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.