Many more to pay tax as Jeremy Hunt freezes allowances and cuts 45p top rate threshold

Millions more to be dragged into 20p and 40p tax rates through ‘fiscal drag’ – and more will pay 45p rate

More Britons will pay higher rates of tax after the autumn state as Jeremy Hunt announce he was freezing allowances for two further years and cutting the threshold for the 45p top rate.

The chancellor said cutting the starting point for the top rate from earnings of £150,000 to £125,140 would see the wealthiest paying an extra £1,200 each year.

The decision to freeze the earnings figure at which the 20p and 40p rate will see many more Britons paying tax or paying higher rates.