Personal tax threshold to be raised a year early

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Personal tax allowances will be raised a year early, the Chancellor announced in today’s budget.

Philip Hammond said that from April next year, the personal allowance will be £12,500 and £50,000 for the higher rate threshold.

Currently they stand at £11,850 and £46,350 respectively and they were due to be highered from April 2020.

As Hammond announced that the “era of austerity coming to an end” and that the budget was to produce an “economy not for the few, not even for the many; an economy for everyone, he left the announcement of tax allowances being raised to the very end of budget delivery.

Hammond said that this would put £130 a year in the pockets of average taxpayers. Hammond told the Commons: “My idea of ending auterity does not involve increasing people’s tax bills.”

 

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