Budget 2014: Personal tax allowance raised to £10,500 from next year
Speaking at today’s Budget announcement, George Osborne announced a new tax-free personal allowance of £10,500 from 2015, surpassing the target of £10,000 he set at the start of the Coalition.
He had said previously of his tax plans, “I'm a low tax Conservative. I want hard-working people on all incomes to keep more of their income tax free.”
The allowance reaches £10,000 this year, with the further increase coming in next year, a move that Osborne said is an income tax cut for 25 million people.
The Chancellor said:
"It is a central part of our long term economic plan that people keep more of the money they have earned.
"Our increases in the personal allowance will have lifted over 3 million of the lowest paid out of income tax altogether. And I am incredibly proud we have achieved that."
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
Lloyds
Lloyds Banking Group launches £5,000 deposit mortgage
Mortgage Rates
Barclays relaunches sub-4% mortgage rate
Bank Of England
Bank of England holds interest rates at 3.75% in 8-1 vote
FCA
FCA bans and fines director £755,000 for advice and insurance failures
Mortgages
Mortgage affordability at tightest level since 2008: UK Finance
Nationwide
Nationwide cuts mortgage rates by up to 0.36%
