Autumn Budget 2017: The tax-free personal allowance limit and higher-rate tax threshold will increase from April 2018.
In his Autumn Budget 2017 speech today (22 November), Chancellor Philip Hammond confirmed that the tax-free personal allowance will increase to £11,850 in April 2018, an increase of £350 from the current allowance of £11,500.
The higher-rate threshold of 40% will also rise from £45,000 to £46,300 from April 2018, and will apply to anyone earning under the £100,000 tax threshold.
In his Budget speech Hammond said: “When we came in to office the personal allowance was £6,475 per year; from April we will increase the personal allowance to £11,850 per year and the higher rate threshold to £46,350.”
In the Autumn Budget 2016, the Chancellor predicted the government would continue to increase the personal allowance until it reached £12,500 and the higher-rate threshold until it reached £50,000, by the end of the Parliament in 2020.