Budget 2014: Personal Tax Allowance set to increase to £10,500
One of the biggest announcements made by George Osborne yesterday in his budget statement was the news that the personal tax allowance will be increasing to £10,500. The Chancellor also announced that higher rate tax will rise from £41,450 to £41,865 next month and will rise by a further 1% over the next year.
The increase in the personal allowance (salary that is exempt from income tax) will come into force from April 2015. The significance of this tax cut means more money will reach the employee, aimed for every worker, candidate and jobseeker.
Overall, this was not a radical budget statement from George Osborne, but it was a budget for employers and employees alike. With a focus on bolstering jobs, the ultimate aim is to consolidate growth in major employment sectors and to ensure that work pays for individuals of all income levels.
Other announcements made by the Chancellor in the budget statement include:
- All tax restrictions on pensioners’ access to pension pots removed
- Reform of pensions taxation
- Inheritance tax abolished for emergency services personnel
- £7 billion package to cut energy bills
- Welfare cap set at £119 billion for 2015/16
- A new “garden city” at Ebbsfleet in addition to plans for 200,000 new homes
- Tobacco duty to rise by 2% above inflation
For more information about the budget announcements, click here.