Income Tax
(asked on 25th September 2019) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of rises in income tax thresholds on income distribution in the last 10 years.
This question was answered on 30th September 2019
Between 2010 and April 2019 the personal allowance has increased by more than 90%. This means that 1.74 million people on low incomes have been taken out of income tax altogether since 2015-16. The Government has also increased the higher rate threshold to £50,000 to support working people to keep more of what they earn.
The income tax system is highly progressive – the top 1% of income taxpayers are forecast to pay over 29% of all income tax in 2018-19.