View more on these topics

Budget 2015: Personal allowance to rise to £11k by 2017

The income tax personal allowance is to rise to £11,000 in 2017/18, Chancellor George Osborne has announced.

In his final Budget before the General Election, Osborne confirmed the personal allowance will rise from its current level of £10,000 to £10,600 next month as planned.

He said the allowance will increase to £10,800 in 2016/17, and to £11,000 in 2017/18.

The Chancellor said this will mean the typical taxpayer is £900 a year better off.

Osborne said: “When we came to office, the personal tax-free allowance stood at just £6,500. We set ourselves the goal of raising that to £10,000 by the end of the parliament.

“We have more than delivered on that promise. In two weeks’ time it will reach £10,600. That’s a huge boost to the incomes of working people and one of the reasons we have a record number of people in work.”

Osborne also announced the threshold at which people pay the higher rate of income tax will rise from £42,385 this year to £43,000 by 2017/18.

He said: “For the first time in seven years, the threshold at which people pay the higher tax rate will rise not just with inflation – but above inflation.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm