Budget 2014: Good news for higher rate tax payers

Budget 2014: Good news for higher rate tax payers

Most higher rate tax payers will see a reduction in income tax

Also on KPMG.com

Today’s Budget saw a small measure of good news for higher rate tax payers, with the threshold at which the 40% rate is payable due to go up by £421 from April 2015. Higher rate payers will also benefit from the increase to £10,500 of the personal tax allowance.

Greg Limb, tax partner at KPMG, said: “After several years of seeing any gain through the personal tax allowance rising being cancelled out by a drop in the amount at which the 40% rate kicks in, now at last most higher rate tax payers will see a reduction in their income tax liability, of around £180. Whilst a relatively modest amount in the scheme of things, I am sure it is something that individuals will welcome.”


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For further information please contact:

Mark Hamilton, KPMG Corporate Communications

M: 07785 337672

E: mark.hamilton@kpmg.co.uk

KPMG Press office: +44 (0)207 694 8773

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Chancellor’s Budget 2014


About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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