In today’s Autumn Budget Chancellor Philip Hammond announced the personal allowance will rise to £11,850 per year from April 2018.
The increase will mean a typical basic rate taxpayer will be £1,075 better off a year than in 2010, Hammond said.
The higher rate tax threshold will also be increased to £46,350.
Hammond promised to raise the allowance in the Spring Budget, reiterating his intentions ahead of the June election.
Aspect8 financial planner Claire Walsh says: “Raising the personal income tax allowance means nearly everyone is a winner, while the wealthiest will shoulder an ever-greater share of overall income tax take.
“While it might seem like a big giveaway, it is only equivalent to around £60 a year and it does not help the most in need, for example part-time employees, who are already earning less than the current personal allowance.”
Old Mutual retirement expert Jon Greer also noted the rise would amount to “only” £70 a year.
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