Budget June 2010 - Tax allowances and bands
The personal allowance for 2010-11 remains at £6,475. In line with the Lib Dems’ manifesto promise – as confirmed in the Coalition agreement, the basic personal allowance will rise to £7,475 from April 2011 with a commitment to further increases towards the promised £10,000 target by the end of the present parliament.
The income figure above which higher rate tax becomes payable will be reduced from April 2011 so that higher rate taxpayers will not benefit from the increase in personal allowances.
