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Income tax threshold to rise ‘towards £11k’ in final Coalition Budget

The Coalition Government is planning to hand 27 million workers a tax cut in the final Budget before the election by pushing up the income tax personal allowance “towards £11,000”.

The personal allowance was already due to increase to from £10,000 to £10,600 from this April, but the Sunday Times reports the Conservatives and Lib Dems will announce a further increase, to at least £10,800.

Basic rate taxpayers are set to save up to £160 a year from the change, while the Treasury would lose more than £1.3bn if higher-rate taxpayers are also included.

Chancellor George Osborne will also announce that companies diverting profits away from the UK to avoid corporate tax will be hit with a 25 per cent levy. High-profile low tax payers such as Google and Amazon would be caught.

The Chancellor will also force mutinational firms to reveal revenue and profit figures for every country they are active in, for the first time.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Dominic Thomas 9th March 2015 at 9:12 am

    Great, just what the country needs… fewer taxpayers. I smell short-term bribe…. back in the world of the real numbers that need addressing:http://www.ukpublicrevenue.co.uk

  2. Not sure what the relevance of mentioning HRT payers is. The withdrawal of the allowance at £100k continues. The HRT threshold will continue to bounce around as it has always done.

  3. Putting the obvious attempt to win votes to one side for a moment !

    Like all budgets its a, rob Peter to pay Paul, exercise !! nothing really changes much in the tax the vast majority pay across the board.

    Mind you one thing is different, the treasury coffers have been bolstered by the theft of the £1.3 billion industry money, to date we have not seen how this has been applied or if it has gone to its intended recipients ?
    In essence, smoke and mirrors, which again leaves the good paying for the bad.

  4. I would rather see the threshold increased to £15k taking a lot more out of tax at all and simplifying things as a result. Cost of recovery of small amounts probably exceeds what is actually recovered. It would also simplify planning for people with smaller pension pots when they reach age 55…..

  5. I’m unconvinced a blanket giveaway on investment income is sensible. If there’s grumblings about rich pensioners getting free TV licences (which I tend to think is sensible given the administrative chaos of checking each applicant) I’m not sure that making millionaires investment income tax free will make good headlines.

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