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Strategies for a high tax environment

Tax liabilities change as incomes increase

1 Aug 2025

After almost a decade of personal allowance increases, the last four years have seen the personal allowance and the higher-rate tax thresholds frozen. This covert revenue-raising method has seen the population of income tax payers in 2024/25 increase by 18% more than in 2020/21, with another five percentage points increase projected by 2028/29. At the same time, the number paying higher rate or additional-rate tax has risen more rapidly – an increase of 69% over the last five years. By2028/29 the Office for Budget Responsibility (OBR) estimates that nearly one in four of all income taxpayers will be paying more than basic rate

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A guide to strategies for a high tax environment

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