The personal allowance is to be raised to £12,500 and the higher rate tax threshold is to be lifted to £50,000 in April 2019, the chancellor Philip Hammond announced today.
The Conservative Party promised to lift the personal allowance and higher rate tax threshold in 2020 but the changes are now being introduced a year earlier.
In his budget speech to the House of Commons Hammond described it as a tax cut for 32m people and said it puts £130 in the pocket of a typical basic rate taxpayer.
So to confirm.— Martin Lewis (@MartinSLewis) October 29, 2018
Currently the personal allowance: (amount most can earn before income tax) is £11,850, from next Apr itll be £12,500 (so £130/yr more in pockets)
And the rate which higher rate tax starts jumps from £46,350 to £50000 (so £730 more) to those it hits. #budget2018
Chancellor: Raising the Personal Allowance to £12,500 pic.twitter.com/E7YZRmb9TE— HM Treasury (@hmtreasury) October 29, 2018