Labour manifesto: Who are top 5% of earners in UK? Would you face a Labour Party tax rise?

The Labour Party has said it would introduce a new 45 percent Income Tax rate starting at £80,000 per year, and a new 50 percent rate starting at £125,000, from 2020/21.

The Labour Party manifesto reads: “We’ll ask those who earn more than £80,000 a year to pay a little more income tax, while freezing National Insurance and income tax rates for everyone else.”

According to the Institute for Fiscal Studies (IFS), these plans would see an increase in Income Tax for 1.6 million people with taxable incomes over £80,000 a year from April 2020.

The IFS says that this is currently the highest-income five percent of Income Tax payers, or the highest-income three percent of all adults.

The think tank has suggested that under the changes, someone with an annual taxable income of £100,000 would lose £1,000 per year, while someone with an income of £150,000 would lose £5,375 per year.