Today’s (22nd June 2010) budget changes should include an increase in the income tax allowance for basic rate taxpayers of £1,000.
This increase in income tax allowances could mean that all those earning up to £37,400 could have their tax-free personal income tax allowance increased by 15.4%, from £6,475 to £7,475.
The income tax allowance move, which was announced by BBC News this morning, should be welcomed by lower earners but may be offset by anticipated tax increases or budget changes in other areas, such as Capital Gains Tax, which is expected to more than double from 18% to around 40%, and would apply mainly to gains from selling a second property or to income from stocks and shares, but is also payable by those who gift their home to their children as well.
For further information on June 2010 budget changes, Income Tax, the personal Income Tax allowance and other tax allowances, and government cuts watch this space as we follow the Chancellor’s budget speech and report back to you.
[...] changes announced in the June 2010 budget include an income tax allowance increase of £1,000 for lower earners from April 2011. The budget changes also contain a declared [...]