Tax bands

News: April 2012

Tax bands

There are traps galore here, too, as the planned increase in the personal allowance to £10,000 in the lifetime of this Parliament is linked to a determination that 40% taxpayers will not gain much of an advantage overall. This is achieved by reducing the income level at which the 40% tax rate starts to bite. For 2012/13 it will be gross income of £42,475 and for 2013/14 the figure is £41,450. The result is that 300,000 taxpayers will become 40% taxpayers without enjoying an increase in their income!

Again, if this sounds like you we can discuss possible ways round this trap in your particular circumstances.