The
Chancellor announced that the personal allowance will be increased to £10,800
in 2016/17 and to £11,000 in 2017/18. The Transferable Tax Allowance will also
rise in line with the personal allowance, being 10% of the personal allowance
for the year.
The higher
rate threshold will rise in line with the personal allowance, taking it to
£42,700 in 2016/17 and £43,300 in 2017/18 for those entitled to the full
personal allowance.
Personal Savings Allowance
The
Chancellor announced that legislation will be introduced in a future Finance
Bill to apply a Personal Savings Allowance to income such as bank and building
society interest from 6 April 2016.
The Personal
Savings Allowance will apply for up to £1,000 of a basic rate taxpayer’s
savings income, and up to £500 of a higher rate taxpayer’s savings income each
year. The Personal Savings Allowance will not be available for additional rate
taxpayers.
These
changes will have effect from 6 April 2016 and the Personal Savings Allowance
will be in addition to the tax advantages currently available to savers from
Individual Savings Accounts.
The Personal
Savings Allowance will provide basic and higher rate taxpayers with a tax
saving of up to £200 each year.
Internet link: GOV.UK News
For more
information please do not hesitate to contact Cliff Pocock at Ward Williams
Financial Services Ltd on 01932 830664 or by email on wwfs@wardwilliams.co.uk.
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