Income and capital gains tax
The income tax personal allowance for taxpayers who are aged 66 or under has been increased to £10,000 during the current year and will be increased further to £10,500 from 6 April 2015. The higher 40% rate threshold has also been increased to £41,865 and will increase by a further 1% from 6 April 2015. There have been no changes to the 45% rate of tax.
The 10% income tax rate on savings has been changed to a 0% rate and the band to which this applies will increase to £5,000 (from £2,880).
The amount of the proposed transferable tax allowance for married couples and civil partners confirmed in the Autumn Statement last year will be increased to £1,050 with effect from April 2016.
The capital gains tax annual exemption has increased to £11,000.