£600 change to personal allowances

by Richard Allum on 13 May 2008

Following mounting pressure on the decision to scrap the 10% tax band from 6 April 2008 the Chancellor has announced that the personal allowance is to increase from £5,435 to £6,035 for the current tax year. Anyone earning up to £40,835 will gain £120 this year. He told MPs he would lower the level at which 40p tax is paid – so higher earners did not gain from the change.

The level at which 40p tax is paid will increase by £600 to £35,400, so the most well-off would not gain more. This will push 150,000 people into the higher 40p tax rate but the Treasury said that these people would still benefit from the extra £120 this year.

{ 1 comment… read it below or add one }

Robor 1 March 2009 at 22:30

Hi there,
Thank you! I would now go on this blog every day!

Thanks
Robor

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