INDIVIDUALS will be allowed to keep the first £10,000 they earn without paying a penny of income tax from April 2014, it was announced yesterday.
Basic-rate taxpayers will be £112 a year better off as part of the deal, which will mean around 2.4m people have been lifted out of income tax since the coalition came to power in 2010 according to analysis provided by the Lib Dems.
“That’s £700 less in tax for working families than when this government came to office,” George Osborne told the House of Commons yesterday. The government has slowly raised the allowance from £6,475 but had not expected to reach their ultimate £10,000 target until 2015.
Colin Stanbridge, chief executive of the London Chamber of Commerce and Industry said the move would help boost business: “Part of ensuring a return to growth will be encouraging consumers to begin spending again and this rise in the personal allowance will help to put money in people’s pockets.”