Spring Budget 2017 – Increase in Personal Allowance & Basic Rate band

It has been confirmed in the Spring 2017 Budget that there will be an increase in both the personal allowance for individuals and the basic rate tax limit.

In line with the Government’s objective to raise the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of this parliament, it was announced for 2017/18 that the personal allowance for individuals will be increased to £11,500 as well as the basic rate band being increased to £33,500 from 6 April 2017.

The measure will reduce the income tax burden for 28.9 million income taxpayers in 2017/18, encouraging more individuals to enter the workplace and also increasing disposable household income.