To be classed in the top 1% of earners, UK taxpayers had to take home in excess of £150,000 per year. To be in the top 0.1% taxpayers must take home at least £650,000 annually, with over 40% aged between 45 and 54.
More than half of the top earners reside in London and the South East areas, with 83% of the top 1% of taxpayers and 89% of the top 0.1% found to be male.
Robert Joyce, deputy director at the IFS, said: “The highest-income people are very over-represented in the country’s south east corner, most of them are men, and many are in their 40s and 50s.
“This geographic and demographic concentration may be one reason why many of those on high incomes don’t realise quite how much higher their incomes are than the average. The sheer scale of the gap between the top 1% and the top 0.1% may also help explain that.”