Budget 2014: No income tax on first £10,500 from next year

The tax-free allowance - already set to rise to £10,000 this April - will be further increased to £10,500 from next year, George Osborne has announced in the Budget.

The move will mean the typical taxpayer will pay £800 less in tax, and will lift 3 million people out of paying income tax altogether, Osborne said, adding, "people should keep more of the money that they have earned". The measure was mentioned in the Autumn Statement last year, and will kick in from next April, just before the general election. An idea first created by the Liberal Democrats, the Tories are attempting to take ownership of it. The move forms part of Chancellor George Osborne's fifth Budget, and the penultimate package before the next general election. For more co...