Budget 2010: Darling to freeze income bands in 'stealth tax' - report

Chancellor Alistair Darling has decided to freeze all income tax bands in the Budget this afternoon, to fund another increase in public spending.

The tactic is a classic "stealth tax" and will be far larger than previously attempted. Personal allowances were last frozen almost a decade ago, The Telegraph reports. Every higher-rate taxpayer earning more than £43,875 will pay an additional £489 in tax as a result of the move, and 75,000 more people will pay this higher-rate tax for the first time. Levels at which inheritance tax becomes payable will also be frozen. The moves will be confirmed in the small print of the Budget and the rates will apply from next month. The income tax grab comes on top of the new 50p higher rate o...