Personal allowance trap

News: April 2012

Personal allowance trap

We mentioned this last month but even more people stand to suffer a marginal tax rate of 60% in 2013/14 than ever before. This is because the trap will apply to those with taxable income between £100,000 and an increased amount of £118,410. This is one tax trap it pays to avoid, as at that level of income you should be paying tax at 40% rather than 60%.

There are several techniques to avoid all this — please contact us for help so you plan ahead in plenty of time.