Personal allowance and higher rate threshold to rise
George Osborne has confirmed that the government will raise the tax-free personal allowance to £11,500 and the higher rate tax threshold from £42,385 to £45,000.
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in C:\inetpub\wwwroot\2025.financialreporter.co.uk\htdocs\templates\front-end\partials\article_blockquote.php on line 2
Speaking during the Budget, Osborne said that the personal allowance increase would see 31 million people benefit from a tax cut.
He said:
"It means a typical basic rate taxpayer will be paying over £1,000 less income tax than five years ago. And it means another 1.3 million of the lowest paid taken out of tax altogether."
Discussing changes to the higher rate tax threshold, Osborne said it would "lift over half a million people who should never have been paying the higher rate out of that higher tax band altogether".
Concluding, he claimed that the move is "the biggest above inflation cash increase since Nigel Lawson introduced the 40p rate almost thirty years ago".
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
FCA
FCA bans and fines financial adviser more than £740,000
In The Spotlight
'Turbulence in the mainstream market creates opportunities in the specialist space': Josh Knight, Glenhawk
Housing Market
Almost half of home sellers hit by broken property chains
Regulation
FCA bans and fines trio behind £35.5m investment scheme
This week's biggest stories:
FCA
FCA bans and fines financial adviser more than £740,000
In The Spotlight
'Turbulence in the mainstream market creates opportunities in the specialist space': Josh Knight, Glenhawk
Housing Market
Almost half of home sellers hit by broken property chains
Regulation
FCA bans and fines trio behind £35.5m investment scheme
CHL Mortgages
CHL enhances bridging range with AVMs and enhanced adverse credit criteria
Housing Market
July housing transactions dip 2% amid 'cautious market': HMRC
