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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Chancellor’s Budget 2014
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