Who pays 40% tax

The £10,000 starting rate of tax is great news for millions.

In the same year, 2014-15, the starting rate for the higher 40% rate will be £41,865 as previously planned.

So although the previous plans were likely to result in more people being drawn into the 40% band, there isn't a specific measure today to bring even more into that bracket.

The threshold for 40% tax is £42,475 this year.

In 2013-14, so starting in April, it will be £41,450.

And in 2014-15, it will be £41,865