Higher-rate tax threshold to rise

Autumn Statement 2014: The higher-rate tax threshold will rise to £42,385 from April 2015.

tax

The current higher-rate threshold is set at £41,865 per annum.

According to Chancellor George Osborne, this will take 138,000 people out of the higher-rate tax band.

Lesley Fidler, associate director at Baker Tilly, said: ”In the past, generosity at the lower end of the earnings spectrum has tended to result in over-compensation at the other, with tax rate bands squeezed to push more taxpayers into the 40% band to pay for the increase in the tax-free personal allowance. But [this is not the case] for 2015-16.”