Chancellor George Osborne said the increases, from this year’s levels of £42,385 and £10,600 respectively, are down payments on Conservative goals of a higher rate threshold of £50,000 and a basic rate threshold of £11,000 within this parliament.
Osborne said: “Tax rates will remain unchanged but the thresholds will be increased. I am raising the personal allowance to £11,000 next year, boosting wages by £900, and a down payment on our goal of £12,500.
“We will also raise the higher rate threshold to £43,000 from next year as the start of our commitment to raise it to £50,000. These changes mean 29 million people will be paying less tax.”
