The personal allowance, the level before tax is paid on income, will increase to £11,000 next year, the Chancellor has said, a year earlier than previously announced.
An increase in the higher-rate tax threshold, above which income is taxed at 40%, to £43,000 has also been brought forward to next year. The Conservatives made a manifesto pledge for the personal allowance to hit £12,500 by the end of their five-year parliamentary term. The personal allowance was previously raised from £10,600 in 2015-16, to £10,800 in 2016-17, and £11,000 in 2017-18. The £11,000 mark will now be in place next year, the Chancellor said. He also said the personal allowance will in future "always rise in line with the minimum wage". "Our priority is not to raise t...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
