The Chancellor has announced that the income tax personal allowance will be increased to £10,000 in 2014-15. The announcement came a year earlier than expected and was met with loud cheers from the
The Chancellor has announced that the income tax personal allowance will be increased to £10,000 in 2014-15. The announcement came a year earlier than expected and was met with loud cheers from the Chamber!
From 2015-16, the personal allowance will increase in line with inflation.
The Chancellor confirmed his earlier announcement in the Autumn Statement 2012, that the higher rate income tax threshold will be increased by 1% to £41,865 in 2014-15 and the basic rate limit will be set at £31,865 in 2014-15.
With regard to employment-related beneficial loans, the Chancellor announced that, from 6 April 2014, employers will no longer be required to report details of 'taxable cheap loans' to employees where the outstanding balance is £10,000 or less. This is an increase to the current threshold of £5,000. There will be no tax charge on the interest free element of the loan provided that the outstanding balances on the loans do not exceed the threshold during a tax year.
From 2015-16, the personal allowance will increase in line with inflation.
The Chancellor confirmed his earlier announcement in the Autumn Statement 2012, that the higher rate income tax threshold will be increased by 1% to £41,865 in 2014-15 and the basic rate limit will be set at £31,865 in 2014-15.
With regard to employment-related beneficial loans, the Chancellor announced that, from 6 April 2014, employers will no longer be required to report details of 'taxable cheap loans' to employees where the outstanding balance is £10,000 or less. This is an increase to the current threshold of £5,000. There will be no tax charge on the interest free element of the loan provided that the outstanding balances on the loans do not exceed the threshold during a tax year.