Higher-rate tax threshold raised to £50,000
The government has confirmed plans to increase the tax-free personal allowance from £11,000 to £12,500 and raise the higher-rate threshold from £43,000 to £50,000 by the end of the current parliament.
"We will deliver on our commitment to raising the allowance to £12,500, and the higher rate threshold to £50,000, by the end of this Parliament."
In today's Autumn Statement, Chancellor Philip Hammond said the tax-free personal allowance would rise to £11,500 by April 2017 before rising to £12,500 by 2020.
Once the Personal Allowance reaches £12,500, it will increase in line with inflation.
Philip Hammond said: "There is one tax reform the government has pursued since 2010 to improve the lot of working people. Raising the tax-free personal allowance.
"When we entered government in 2010 it was £6,475. Now, after 6 years it is £11,000, and will rise to £11,500 in April.
"As a result, we have more than halved the tax bill of someone with a salary of £15,000 to just £800. That’s a massive boost to the incomes of low and middle earners.
"Since 2010 we’ve cut income tax for 28 million people and taken 4 million people out of income tax altogether.
And I can confirm today that, despite the challenging fiscal forecasts, we will deliver on our commitment to raising the allowance to £12,500, and the higher rate threshold to £50,000, by the end of this Parliament.
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