The threshold for the 45p tax rate will be reduced from £150,000 to £125,140, Chancellor Jeremy Hunt has announced in his Autumn Statement.


Speaking in the House of Commons today, and setting out his priorities of “stability, growth and public services”, Hunt said “we ask those with more, to contribute more”. Despite the tax rise, Hunt said that he had tried to be fair, avoiding an increase in headline tax rates, to avoid damaging growth.


Hunt also announced that the income tax personal allowance threshold would be frozen until 2028, meaning that millions will pay more in so-called “stealth taxes”, assuring the Commons that the UK will “still have the most generous set of tax-free allowances of any G7 country.”