Personal Allowance taper between £100,000 and £125,140
Once income exceeds £100,000, entitlement to the Personal Allowance begins to reduce.
This taper continues until the allowance is fully withdrawn.
How the taper operates
For each increment of income above £100,000, a portion of the Personal Allowance is lost.
The effect is to increase the amount of income subject to tax as income rises.
Why £125,140 matters
By the time income reaches £125,140, the Personal Allowance has been fully withdrawn.
The range between these figures is therefore a distinct zone in which the interaction between income and tax operates differently from lower income bands.
Why this is often misunderstood
The taper does not appear clearly on payslips or headline summaries.
Its impact is usually only visible when taxable income, allowances and thresholds are considered together.
Further analysis
A personalised analysis can show how the taper applies in your circumstances and how it interacts with other income-related thresholds.
View the £100k Cliff Edge Report
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