Spring Budget: Income tax rates and allowances
In today’s Budget George Osborne announced he wanted to help working people save more and keep more of the money they earned and so both the personal allowance and higher rate threshold are set to increase.
In fact, The Chancellor set his stall out on income tax some time ago and we knew he was in the process of raising the personal allowance to £12,500 by 2020.
He also has the long term target of raising the threshold for the 40% higher rate of income tax to £50,000 by 2020.
So, while the main rates of tax remain unchanged. The personal allowance will increase to £11,500 in 2017/18 with the higher rate threshold increasing to £45,000.