2017 Autumn Budget

Income Tax

Income Tax
The Chancellor of the Exchequer announced in his Autumn Budget that the Income Tax Personal Allowance currently £11,500 is to be increased to £11,850 in April 2018 and the Higher Rate threshold, currently £45,000 is to be increased to £46,350. The Government is committed to raising the Income Tax Personal Allowance to £12,500 and the Higher Rate threshold to £50,000 by 2020. In 2010 the personal allowance was £6,475 and the Higher Rate Threshold was £43,875.

The value of the Marriage Allowance which allows taxpayers to transfer up to 10% of their unused PA to their partner, reducing their tax bill by up from £230 a year in 2017-18 to £237 in 2018/19. Claims will now be accepted in respect of deceased partners. 

The Finance Bill giving effect to these changes is now going through Parliament.