Autumn Statement: Income tax
The personal allowance is set at £9,440 for 2013/14, compared with the current allowance of £8,105. The personal allowance represents the income an individual can receive without paying tax, and was originally planned to be £9,205 next year.
The allowance is withdrawn on a tapered basis where income is between £100,000 and £118,880. Individuals whose income is above £118,880 receive no personal allowance.
The higher rate threshold will be cut from £42,475 to £41,450 in 2013/14. This will bring in more taxpayers into the higher rate tax bracket. From 2014/15, the higher rate threshold will be increased by 1%, followed by a further 1% in 2015/16.
As previously announced, the 50% rate of tax will be reduced to 45% from April 2013, and will apply to income over £150,000.