Income Tax: Tax Rates and Bands
(asked on 5th December 2024) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of freezing Income Tax thresholds until 2028 on the number of people who will begin paying (a) Income Tax and (b) the higher rate of Income Tax in each financial year of this Parliament.
The information requested is published as part of the OBR’s Economic and Fiscal Outlook (EFO). The published table sets out the effects of the threshold freeze on taxpayers, by showing estimated numbers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information has been updated in the EFO at each recent fiscal event.
The below is an extract from this published table:
3.18 Effect of threshold freezes on additional taxpayers | |||||||
| Million | ||||||
| 2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 | 2028-29 | 2029-30 |
Number of taxpayers |
|
|
|
|
|
|
|
…brought into income tax | 2.2 | 3.3 | 3.5 | 3.9 | 4.2 | 4.2 | 4.2 |
…brought into higher-rate band | 1.4 | 2.2 | 2.5 | 2.8 | 3.0 | 3.0 | 3.0 |
The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)