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Income tax league: Revealed - the UK towns where people pay the most and least tax

Residents of Elmbridge in Surrey, nicknamed the ‘Beverly Hills’ of Britain, pay an average £16,600 in income tax a year

Roisin O'Connor
Tuesday 22 July 2014 12:33 BST
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Income tax league: The Chilterns is in third place, with tax take per person standing at £12,700
Income tax league: The Chilterns is in third place, with tax take per person standing at £12,700

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There can be little doubt that living in picturesque commuter towns comes at a cost. But just how much may come as a surprise.

Income tax payments cost the average British taxpayer £4,985 a year, but research has revealed that those who reside in the leafier areas are paying up to three times that amount.

Research by accountancy firm UHY Hacker Young discovered that taxpayers who live in the south-east of England make the biggest income tax contribution, with 28 of the top 30 regions located in the ‘stockbroker belt’ towns.

Taxpayers in Elmbridge, Surrey, pay the most at £16,600 a year. The area is nicknamed the ‘Beverly Hills’ of Britain and has several famous residents, including musician Elton John and 2013 Wimbledon champion Andy Murray.

In second place is South Buckinghamshire, with its residents paying £13,600 on average, while Chiltern Hills, an area of outstanding natural beauty, is in third place with tax take per person standing at £12,700.

At the other end of the tax league table, those who live in Blackpool pay the least income tax out of all the 401 regions at £2,290 a year.

Blaenau Gwent, in South Wales, is second from the bottom out of 401 areas at a £2,460 average, with Kingston upon Hull in Yorkshire third from bottom at £2,470.

Mark Giddens, Head of Private Client Services at UHY, said that the Government is becoming increasingly reliant on the wealthiest parts of the South Eastern commuter belt and London for income.

“The Government has increased the tax burden on high earners since the credit crunch. Higher taxation of wealthy individuals in the South East has proven to be an effective means to boost tax receipts, but these numbers will not make for pleasant reading for those affected,” he added.

Mr Giddens said that the huge income tax payments from households in the Elmbridge area indicate “the desirability of the area among the super-rich”.

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