Futurelink News June 2010

Chancellor Raises Personal Allowance

Chancellor George Osborne raised the income tax threshold to 7,475 pounds from 6,475 pounds in his emergency budget on Tuesday.

"We will increase this personal allowance by 1,000 pounds in April," Osborne said in his budget statement to parliament. "People will be able to earn 7,475 pounds before they have to start paying income tax.

"Twenty-three million people who are basic rate taxpayers will each gain by up to 170 pounds a year. 880,000 of the lowest income taxpayers will be taken out of tax altogether.

"Income tax rates in the UK are currently 20, 40 and 50 percent, depending on a person's income.



 

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