What is the highest marginal rate of tax in 2016/17? Is it between;
1. 0 - 60%
2. 61 - 100%
3. 101- 500%
4. 501 - 1000%
5. Over 1000%
Replies (3)
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This smells like a leading question to me. Do you have someone that you think is in category 5? If so, it might be helpful to post some details.
If this is not a leading question, why are you asking? There are so many factors that working out the highest marginal rate from scratch would be a lot of work.
The answer is 5. If a person is at the threshold for higher rate and the income includes at least £1,000 interest then an extra £1 of income will result in a tax liability of 40p plus 20% of £500 because of the reduction in the zero rate band for interest.
Not sure if that is the highest marginal rate possible, though.
In theory, unlimited. That unlucky person will have £501 of savings income, a total income which is a multiple of £100 between £50000 and £60000 and a huge number of kids qualifying for Child Benefit.