A · Glossary
Additional rate tax
45% top rate of UK income tax, paid on income above £125,140.
Additional rate tax is the highest tier of UK income tax — 45% on taxable income above £125,140 in 2025/26 (down from £150,000 pre-April 2023).
By the additional rate threshold, your Personal Allowance is fully tapered away. Pension contributions and charity giving give 45% tax relief in this band — high earners often use them aggressively.
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