In 1991/92, 3.5% of UK adults (1.6 million) paid the 40% higher rate of income tax - but by 2022/23, the number had increased to 6.1 million or 11%.
One in five taxpayers will be paying higher-rate income tax by 2027, in what the Institute for Fiscal Studies describes as a"seismic shift" since the 1990s.
The process is called fiscal drag, and it happens when inflation or income growth moves a taxpayer into a higher tax bracket - increasing tax revenue without the government having to actually raise rates. Isaac Delestre, a research economist at the IFS, said:"For income tax, the story of the last 30 years has been one of higher-rate tax going from being something reserved for only the very richest, to something that a much larger proportion of adults can expect to encounter."
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