Following the introduction of the High Income Child Benefit Tax Charge (HICBC) on 6 January 2013, and the reduction in the additional rate threshold from April 2023, many higher rate taxpayers have to navigate the effects of several different tax bands during their tax planning. The marginal tax rate when income exceeds a band may be as high as 70% of income.

See Tax planning for income at marginal tax rates for strategies to avoid unexpected tax charges.

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