...when income between 100k and 120k is already taxed at 60p*?
* Assuming a personal allowance of 10k which is reduced by ?1 for every ?2
of taxable income above 100k. Marginal tax rate would be nominally 40%, but
for each ?2 over 100k you'd pay 80p on those ?2 and an additional 40p on the
?1 you lose from your personal allowance. So you pay an extra 120p for each
?2 you earn between 100k and 120k which is equivalent to paying 60p per ?.
Or am I missing something?
- posted 6 years ago