Budget 2014: Higher tax rate threshold increased
The threshold for the higher, 40% rate of tax has been one of the more fiercely debated Budget topics.
Chancellor George Osborne today announced the rate will be raised from £41,450 to £41,865 next month, and then by a further 1% to £42,285 next year.
The Conservative MP, David Ruffley, recently suggested that it was time 'to focus on people who are not rich but the striving middle', a phrase which has been much-repeated in the discussion leading up the Budget announcement.
Osborne said:
“Because I am also passing the full benefit of today’s personal allowance increase on to higher rate taxpayers – people earning £42,000, 43, 50, 60, all the way up to £100,000 will be paying less income tax because of this Budget.”
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