Income Tax: personal allowance and basic rate limit for 2016 to 2017 and 2017 to 2018
This Tax Information and Impact Note is about changes to Income Tax personal allowances and basic rate for 2016 to 2017 and 2017 to 2018.
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This measure announces that the personal allowance will be increased to £10,800 for 2016 to 2017 and £11,000 for 2017 to 2018. The basic rate limit will be increased to £31,900 for 2016 to 2017 and £32,300 for 2017 to 2018. As a result, the higher rate threshold will be £42,700 in 2016 to 2017 and £43,300 in 2017 to 2018.
From 2016 to 2017, there will be one Income Tax personal allowance regardless of an individual’s date of birth.