Higher rate tax

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What is happening?

The personal allowance is increasing to £11,500 for 2017/18. The higher rate threshold will be £45,000 (raising from £43,000) in 2017/18.

How does this affect me?

If you earn between £45,000 and £100,000, you’ll benefit from an annual saving of £400. It’s also going to lift over a half a million people out of the higher tax band altogether according to Chancellor George Osborne. Additionally, the £500 rise in the allowance works out at a £100 tax saving for everyone who earns over £11,500 a year. In total, the Government are claiming that the Higher Rate Tax will benefit 31 million people, paying over £1,000 less income tax than 5 years ago.

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