Income Tax: Low Incomes

(asked on 22nd March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to not freeze the threshold for payment of the basic rate of income tax in the financial year 2021-22 to avoid penalising low earners.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 25th March 2021

As confirmed at Budget, the Government will fulfil its promise to increase the income tax Personal Allowance to £12,570 in financial year 2021-22.

The Government has almost doubled the Personal Allowance since 2010 and it is now the highest basic personal tax allowance of all countries in the G20.

The decision to maintain the Personal Allowance at this higher level will not come into effect until April 2022, when the economy will be on a stronger footing.

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