As announced at Budget 2013 and confirmed in the Autumn Statement, the income tax personal allowance will be increased to £10,000 from 6 April 2014. The higher rate threshold will be increased by 1%
As announced at Budget 2013 and confirmed in the Autumn Statement, the income tax personal allowance will be increased to £10,000 from 6 April 2014. The higher rate threshold will be increased by 1% to £41,865 and basic rate limit set at £31,865.
It was announced in the budget today that, for the tax year 2015 to 2016, the personal allowance will be increased to £10,500, the higher rate threshold increased by 1% to £42,285 and the basic rate of income tax reduced to £31,785.
The increase in the income tax personal allowance means that taxpayers will earn more before income tax is deducted. However, the increase in the higher rate threshold by only 1% means that more middle-income earners could be subject to the higher rate, as the threshold increase is not enough to match inflation.
The Government has also confirmed the announcement in the Autumn Statement 2013 that, from 2015-16, married couples and civil partners will be able to transfer £1,050 of their income tax personal allowance to their spouse or civil partner, provided neither partner is a higher or additional rate taxpayer. The transferable amount has been set at 10% of the personal allowance in each tax year. This change will benefit couples where one of the partners has not used his full personal allowance and will mean that the unused personal allowance will not be lost.
It was announced in the budget today that, for the tax year 2015 to 2016, the personal allowance will be increased to £10,500, the higher rate threshold increased by 1% to £42,285 and the basic rate of income tax reduced to £31,785.
The increase in the income tax personal allowance means that taxpayers will earn more before income tax is deducted. However, the increase in the higher rate threshold by only 1% means that more middle-income earners could be subject to the higher rate, as the threshold increase is not enough to match inflation.
The Government has also confirmed the announcement in the Autumn Statement 2013 that, from 2015-16, married couples and civil partners will be able to transfer £1,050 of their income tax personal allowance to their spouse or civil partner, provided neither partner is a higher or additional rate taxpayer. The transferable amount has been set at 10% of the personal allowance in each tax year. This change will benefit couples where one of the partners has not used his full personal allowance and will mean that the unused personal allowance will not be lost.