Taxpayers need to be aware of arbitary thresholds

In April 2017, a rule was introduced to exempt millions of family homes from death (IHT) duties. Estates worth more than £2m, however, will have the tax break clawed back, losing £1 of relief for every £2 over the allowance.

High earners also face additional tax penalties.  The standard Annual Allowance for pension savings is £40,000, but those who earn more than £150,000 a year have their Allowance curtailed on a sliding scale  to as low as £10,000 a year.

People in this salary band also lose their personal savings allowance, so any interest earned is taxed at 45pc.  As well as facing higher taxes, people with income above a certain level also lose their entitlement to some benefits.  For example, when one person in a couple earns more than £100,000, they are no longer eligible for 30 hours of free childcare.