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Written question asked by Lord Field of Birkenhead (Crossbench) on Monday, 13 June 2022, in the House of Lords. It was due for an answer on Monday, 27 June 2022. It was answered by Baroness Penn (Conservative) on Thursday, 23 June 2022 on behalf of the Treasury.

Income Tax: Tax Allowances

Question

To ask Her Majesty's Government what assessment they have made of the additional revenue the Treasury has received as a result of its decision not to index personal tax allowances for each year since the decision was taken; and what estimate they have made of the additional revenue that will be received by May 2024.

Answer

At Spring Budget 2021, the Government took the difficult but necessary decision to raise taxes to repair the public finances following the largest economic recession on record. The Government announced that the Income Tax Personal Allowance (PA) and the higher rate threshold will be maintained from 6 April 2022 until 5 April 2026 at £12,570 and £50,270 respectively.

The Office for Budget Responsibility recently published their March 2022 Economic and fiscal outlook. This includes the latest estimate for yearly yield from maintaining the income tax thresholds.

Secondary information

Type
Written question
Reference
HL873
Session
2022-23
Subjects
Income tax Tax allowances Uprating
Contains statistics
Yes
Link
View this Written question on www.parliament.uk