Summer Budget 2015: Personal allowance indexation change

There is currently no automatic uplift in the rate of personal allowances.

Legislation will be introduced to ensure that when the personal allowance reaches £12,500, it will be increased in line with the National Minimum Wage (NMW). As part of this process, the government has also announced a review of the NMW timetable to align it with the tax year.

This measure is aimed at ensuring that anyone working up to 30 hours per week, does not pay income tax. The legislation will be implemented from the date of Royal Assent.