THE TELEGRAPH: All basic rate taxpayers are to be offered an income tax cut worth at least £140 in this summer’s emergency Budget, The Daily Telegraph can disclose.
The tax-free personal allowance will be raised by at least £700 to more than £7,000 under plans by the Liberal-Conservative coalition — a move that will benefit an estimated 25 million lower-paid workers and pensioners.
Anyone earning more than £35,400 will be worse off due to the planned rise in National Insurance contributions.
The disclosure that tax cuts will be on offer in the first Budget may surprise voters because the Government is struggling to find public sector cuts to help clear Britain’s record debt. However, it reflects the Liberal Democrats’ policy to help lower-paid workers.
The income tax cut, likely to be announced in July, is to be introduced from next April. The personal allowance could rise by even more if extra money is collected from an increase in capital gains tax.
However, the Treasury is expected to alter the tax thresholds to ensure that higher-rate taxpayers — those earning more than about £40,000 — will not benefit from the increased allowance. >>> Robert Winnett, Deputy Political Editor | Thursday, May 13, 2010
