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Budget 2011: Income tax allowance will increase by £630 in 2012

Chancellor George Osborne has announced that the personal income tax allowance will increase by £630 to £8,105 from April 2012.

The increase is slightly higher than the expected £600 income tax allowance increase.

Delivering the Budget today, Osborne said the move would benefit “those working hard to pay for their families’ needs.”

In last year’s Budget, the Chancellor announced the allowance will rise by £1,000 in April this year to £7,475, alongside a £1,400 cut to the threshold for those paying 40 per cent tax from £43,875 to £42,475.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Please note that the HRT threshold reduces by £1,400 down to £42,475 from 6 April 2011.

  2. I missed the budget speech and cannot find any information about age related personal tax allowance for 2012. Will it be the same as under 65’s

  3. The tax allowance for under 65’s from April 2011 will be raised by £1000, for over 65’s by only £450. This will mean over 65’s are £110 worse off compared to under 65’s. Will the same thing happen with the 2012 tax allowances. He seems to be hitting the pensioners.

  4. Once again the elderly and particularly those who made some effort to accumulate a little wealth for their later years are being unfairly penalised.
    Let’s hope that by the time the chancellor seeks re-election he will reward those who voted for him last time.

  5. Question to the Government – Pensions Secretary.
    If and when you bring in the new pension amounts, some say £140 others say £155 why is it for the new pensioners only and not existing ones as well, isnt this Discrimination in the worse possible way.
    Is’nt it time the whole Pensioners in this Great place was recognised for once.

  6. Weejoethebakerboy 1st November 2011 at 8:07 pm

    He had better sort out pensions for the elderly in plenty of time before the next election ,otherwise the so called “baby boomers” will put him where he belongs- in the manure pile beside everybody else!!!

  7. There’s an entry missing from your tax bracket tables. Due to the phaseout of personal allowance there is an effective 60% income tax band at £100,000 – £112,950 for 2010-11, £100,000 to £114,950 in 2011-12. In these ranges a SIPP makes real sense (as perhaps does taking one or two days a week unpaid to play golf rather than work). On definitions of “rich”, I find it useful to differentiate between owning-your-own-island rich and letting-your-kids-order-anything-off-the-menu rich. Unfortunately, politicians of all stripes are unable to see any difference between the two.
    Matthew from http://britainloans.co.uk/

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