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Written question asked by Rachael Maskell (Labour) on Wednesday, 23 March 2022, in the House of Commons. It was due for an answer on Monday, 28 March 2022. It was answered by Lucy Frazer (Conservative) on Friday, 1 April 2022 on behalf of the Treasury.

Income Tax: Tax Rates and Bands

Question

To ask the Chancellor of the Exchequer, if he will make it his policy to increase the higher income tax threshold at the same time as a potential reduction in income tax in 2024.

Answer

The cut to the basic rate of income tax to 19% from 2024, the first basic rate cut in 16 years, will benefit all income tax payers in England, Wales and Northern Ireland, including higher rate taxpayers.

The higher rate threshold is high enough to protect over 80 per cent of taxpayers from paying the higher rate of income tax and it is right that those with the most contribute the most.

The government has also announced it will align the NICs Primary Threshold and Lower Profits Limit with our internationally high income tax personal allowance from July this year. This is the largest ever increase to a personal tax starting threshold, meaning the amount people can earn before paying tax will increase by £2,690.

Secondary information

Type
Written question
Reference
145930
Session
2021-22
Subjects
Income tax Tax rates and bands
Link
View this Written question on www.parliament.uk