Increase in higher-rate tax threshold

Autumn Statement 2012: Chancellor George Osborne announced in the Autumn Statement today that the higher-rate threshold for income tax will increase by 1% in each year between 2013 and 2016.

The rate above which individuals pay income tax at 40% will be set at £41,450 in 2014-15 and rise to £42,285 in 2015-16. The rate is being increased by 1% rather than inflation.

The upper earnings limit and upper profits limit for national insurance contributions will increase to remain in line with the threshold.