Mitigating a Growing Tax Bill
If you are a high earner and feel you are paying more and more tax, you are not alone. More than one in seven income tax payers are taxed at the higher or additional rate and they pay about two thirds of all income tax.
Increasing the tax burden for higher earners has been a deliberate policy of successive governments. For instance, the thresholds for phasing out the personal allowance and the start of the additional rate tax threshold have both been unchanged since they came into force in April 2010.
This guide covers the following areas:
- THE TAX BURDEN ON HIGH INCOME
The tax consequences of high income
- THE POWER OF YOUR PENSION
How you can use pension contributions to reduce your tax bill
- SELF-INVESTED PERSONAL PENSIONS (SIPPS)
The investment option that lets you control how and where your money is invested
- PENSION WITHDRAWALS
The tax-efficient way to access your money, when the time comes
Our full range of Key Guides can be found at:
The value of tax reliefs depends on your individual circumstances.
Tax laws can change.
The Financial Conduct Authority does not regulate tax advice.
The value of your investment can go down as well as up and you may not get back the full amount you invested.
Past performance is not a reliable indicator of future performance.
Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.