Personal allowance to rise to £10,600

The Chancellor will raise the personal allowance threshold to £10,600 in the next year, £100 more than the initially planned £10,500.

In his Autumn Statement speech on 3 December, Geroge Osborne said the move will save working people £825 a year and "will take three and a half million of the lowest paid workers out of paying tax altogether". He said the move was the first step to raising the threshold to 12,500 by 2020, and was "because we at this side of the house don't sneer at people who want to work hard". Osborne also confirmed the increase will be passed on in full to higher rate tax payers, pushing the threshold for the 40p band from £41,865 to £42,385 next year. "This is the first increase in line with in...