Personal Income Tax
|Personal allowance increases to £11,850 for the 2018/2019 tax year.|
|Higher rate threshold increases to £34,500 from April 2018.|
|Marriage allowance claims, which allow for 10% of unused personal allowance to be transferred to a spouse, can now be made on behalf of deceased partners and backdated up to four years.|
|A consultation paper is being launched regarding the use of the ‘rent a room relief’ allowance.|
|No change to the previously announced dividend allowance which reduces to £2,000 from April 2018.|
Previous Budgets saw the Chancellor of the day make a raft of changes to reduce the amount of Income Tax that people pay; which should ultimately lead to less reliance on benefits.
Today’s Budget however saw no significant changes to any of the Income Tax rates and rules in place, but the Chancellor reaffirmed the government’s target of a £50,000 higher rate personal Income Tax threshold within the current Parliament.
With a personal allowance of £11,850 and a higher rate tax threshold of £34,500 from April 2018, this means that a taxpayer would need to have income of over £46,350 before any higher rate tax would be due.
If you have any Income Tax queries, please contact one of our Tax Specialists on 01228 711888.