The £100,000 income cliff edge is a significant issue in the UK tax system, according to Michael Healy, UK & Ireland managing director at IG Group. He says the threshold discourages ambition and distorts career choices, particularly for high earners who are not yet rich. A cites an IG survey showing that 80% of respondents have avoided crossing the £100,000 income threshold, with many reducing hours or declining promotions. Mr Healy argues that reforming the system is essential for economic growth, suggesting that thresholds should be adjusted for inflation and calling for targeted measures to encourage long-term investment. "Reforming it would send a powerful signal that ambition, work, and long-term investment are valued," he argues.
