Income Tax
What is Personal Allowance Taper?
The Personal Allowance Taper reduces your £12,570 tax-free allowance by £1 for every £2 you earn above £100,000. By £125,140, it's completely gone. In Scotland, this creates an effective marginal tax rate of 67.5% (vs 60% in England) because the 45% Advanced Rate combines with the taper effect. Pension contributions can avoid this trap.