Wednesday, 20 March 2013
£50 gain from new tax allowance
Detail on the impact of the new £10,000 Personal Allowance - the level at which you have to start paying 20% income tax.
From the Treasury:
The increase in the personal allowance to £10,000 will take 257,000
individuals out of income tax altogether in 2014-15.
By April 2014, the cumulative effect of this Government’s increases in the
personal allowance will lift 2.7 million people out of the income tax system.
In 2014-15, the increase will provide 24.5 million individuals with a real
terms gain (over and above that from normal indexation) averaging £50.
Of these, 20.4 million will be basic rate taxpayers and 4.2 million higher
rate taxpayers (figures may not sum due to rounding).
0.47 million individuals will have an average loss of £50 in 2014-15. All of
these have incomes above the breakeven level near £120,000 at which
the personal allowance is tapered to zero and so no benefit is derived
from the personal allowance increase.