Rich to lose most from new measures in April, as 750,000 brought into higher rate tax

<p><p>As the governor of the Bank of England predicts stagnant real earnings for some time to come, households will be hit by a further average £200 a year loss from tax increases and benefit cuts due in April. In addition there will be big changes in marginal tax rates for some. Around 750,000 more people will become higher rate taxpayers as a result of a reduction in the level of income at which the higher rate starts to bite. This reduction accompanies the increase of £1,000 in the tax allowance which itself will take 500,000 other people out of tax altogether.</p><p>These are among the findings of new analysis done at the IFS in preparation for the launch of our annual IFS Green Budget on Wednesday February 2.</p></p>