Increase in tax allowance

Mag2.0

Anyone know when this could come into force now that lib dems are in partnership with conservatives?


Ps, sorry if this is in the wrong section.

many thanks

fengirl_2

There will be a budget in a few weeks. The increase in allowances to £10k is unlikely to take immediate effect.

Geoff_W

What I want to know is what will happen to over 65's who already have a Personal Tax Allowance of £9,495? Will the differential be maintained or will everybody be on £10,000 including over 75's?

tigtag02

fengirl wrote: »

There will be a budget in a few weeks. The increase in allowances to £10k is unlikely to take immediate effect.

And quite possibley the base rate being upped from 20%!!

Mikeyorks

Geoff_W wrote: »

What I want to know is what will happen to over 65's who already have a Personal Tax Allowance of £9,495? Will the differential be maintained or will everybody be on £10,000 including over 75's?

Like all of us - you need to wait a month and see!

But it would be a good idea to equalise and then get rid of the silly and costly age related clawback for those earning over £22,900. Also the 10% Savings rate which was introduced in haste and is again both costly and widely misunderstood.

BoGoF

I really can't see any change being effective from this tax year. It would be an administrative nightmare for HMRC..........anyone disagree ?

TM1976

Based on what I've read I expect a decent rise in the personal allowance for 11/12 perhaps £1,000 to £1,500 pa then possibly some more far reaching changes proposed for the years after that will change the way the system works a bit more, likely to include changes to tax credits etc working towards a £10,000 allowance by the end of the term of parliament.

Starrystarrynight

After the Chancellor said there would be a substantial increase in the tax threshold, I thought around another £1K.

Mikeyorks

BoGoF wrote: »

I really can't see any change being effective from this tax year. It would be an administrative nightmare for HMRC..........anyone disagree ?

Bear in mind the £600 increase nearly 2 years ago after the cack handed abolition of the 10% tax band? That was effective in Sept and didn't - I think - cause HMRC any real problems.

An early handout might just sweeten some of the less palatable stuff headed in our direction.

dzug1

BoGoF wrote: »

I really can't see any change being effective from this tax year. It would be an administrative nightmare for HMRC..........anyone disagree ?

It's been done before with no real problems for them (with the government explaining it, yes, but not with them actually doing it).

But given that they are struggling already and may well have politically inspired staff cuts that will ignore the workload it might be different this time

mjm3346

They have said the personal allowance changes will be from 2011.
I cannot see any reason why they would be looking to increase the age-related allowances above the eventual £10k planned for everyone.

http://libdems.org.uk/latest_news_detail.aspx?title=Conservative_Liberal_Democrat_coalition_agreements&pPK=2697bcdc-7483-47a7-a517-7778979458ff