Announced in Budget 2011
Consultation expected later in 2011
The 2011 Budget announced that:
- The income tax personal allowance will rise from £7475 in 2011/12 to £8,105 for 2012/13.
- From 2012/13, indexation of most National Insurance rates and thresholds will be inline with the Consumer Price Index (CPI) instead of the Retail Price Index (RPI).
- The Government will consult later in 2011 on integrating the operation of income tax and National Insurance contributions. NICs will not be extended to individuals above state pension age or to income from pensions' savings and dividends.