Personal tax allowance frozen until 2028. 15 March at 3:25PM in Cutting tax 4 replies 328 views

whattochoose

For some reason I'd convinced myself that the personal allowance tax threshold of £12500 had been frozen until 2026.
To my dismay, I see I was wrong and the tax threshold of £12500 is actually in place until 2028!
For the next tax year, this freezing of PA's, and the 10.1% increase in the State Pension will ensure my tax liability is noticeably increased elsewhere, in terms of my personal circumstances.
I wonder if, as a pre-election sweetener, the Government might shorten the time before personal allowances are increased?

sheramber

the increase until 2027/28 was only made in November 22 budget.

purdyoaten2

This was announced on November - frozen at 12570. State pension increase good though!

geordiejon

yes pension rise was good but overall tax will be higher £184 in 22/23 up to £410 23/24.

daveaspy

whattochoose said:

I wonder if, as a pre-election sweetener, the Government might shorten the time before personal allowances are increased?

I think that's nailed on. The "government" will have slashed inflation, they will have spent less than expected on energy help so there are billions in the coffers, now is the time to help everybody by increasing personal allowances, to come in shortly after the election