Budget 2014: 40% income tax threshold to rise this year and next

The 40% income tax threshold will rise this year and next, Chancellor George Osborne has said in the Budget.

The higher rate threshold will increase for the first time this parliament from £41,450 to £41,865 next month. It will then rise by a further 1% to £42,285 next year. "People earning £42,000, £43,00, £50,00, £60,000 all the way up to £100,000 will be paying less income tax because of this Budget," Osborne said. The move follows pressure on the chancellor to make the increase from Tory MPs with an eye on the next election. The Institute for Fiscal Studies (IFS) has said previously that, compared with the state of play when the coalition government took office four years ago, the ...