The personal allowance will be reduced at a rate of £1 for every £2 over £100,000 until completely withdrawn.
This replaces the two-stage withdrawal announced at the 2008 pre-Budget report.
Standard Life head of pensions policy John Lawson says: “This will be an opportunity to gain tax relief rates of up to 61 per cent by sacrificing salary and protecting the personal allowance. However it now means anyone earning more than about £113,500 will now lose their whole personal allowance. Under previous plans you wouldn’t have lost your whole allowance until you earned £146,500.”