What is the UK additional rate of tax?

Income above £125,140 is taxed at 45%. There is no personal allowance at this income level as it has been fully tapered away.

How does the 60% effective rate trap work?

Between £100,000 and £125,140, losing £1 of personal allowance per £2 earned creates an effective marginal rate of 60%.

Pension contributions, charitable Gift Aid, and EIS/SEIS investments can provide relief against the 45% rate.

Calculate UK 45% additional rate income tax on earnings above £125,140 for 2024/25. Full band calculation showing all three rates combined.

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