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<p>A breakdown for the Exchequer impact of the changes to the Income Tax Personal
Allowance (PA) and Higher Rate Threshold (HRT) announced at the Budget 2018 on 29
October 2018 is provided in Table 1.</p><p> </p><p>Table 1: Exchequer Impact of Budget
2018 announcement– “Personal Allowance and Higher Rate Threshold: increase to £12,500
and £50,000 for 2019-20 and 2020-21”, and Exchequer Impacts of the Personal Allowance
and Higher Rate Threshold Elements.</p><p> </p><table><tbody><tr><td><p>Budget 2018
announcement (£ million)</p></td><td><p>2018-19</p></td><td><p>2019-20</p></td><td><p>2020-21</p></td><td><p>2021-22</p></td><td><p>2022-23</p></td><td><p>2023-24</p></td></tr><tr><td><p>Personal
Allowance and Higher Rate Threshold: increase to £12,500 and £50,000 for 2019-20 and
2020-21</p></td><td><p>0</p></td><td><p>-2,790</p></td><td><p>-1,935</p></td><td><p>-1,445</p></td><td><p>-1,605</p></td><td><p>-1,780</p></td></tr><tr><td><p><em>of
which</em></p></td><td><p> </p></td><td><p> </p></td><td><p> </p></td><td><p> </p></td><td><p>
</p></td><td><p> </p></td></tr><tr><td><p>(i) Personal Allowance: increase to £12,500
for 2019-20 and 2020-21*</p></td><td><p>0</p></td><td><p>-1,980</p></td><td><p>-885</p></td><td><p>-600</p></td><td><p>-650</p></td><td><p>-725</p></td></tr><tr><td><p>(ii)
Higher Rate Threshold: increase to £50,000 for 2019-20 and 2020-21 (given (i))**</p></td><td><p>0</p></td><td><p>-810</p></td><td><p>-1,050</p></td><td><p>-845</p></td><td><p>-955</p></td><td><p>-1,055</p></td></tr></tbody></table><p>
</p><p>* This line assumes no change to the Basic Rate Limit (BRL).</p><p> </p><p>**
This line reflects the impact of increasing the HRT to £50,000, assuming the PA has
been increased to £12,500.</p><p>The Exchequer impact above includes the impact from
the Upper Earnings Limit and Upper Profits Limit for National Insurance being aligned
with the Income Tax Higher Rate Threshold. Further information on the Exchequer impact
from the “Personal Allowance and Higher Rate Threshold: increase to £12,500 and £50,000
in 2019-20 and 2020-21” measure can be found in “Budget 2018: policy costings”.</p><p>Totals
may not sum due to rounding.</p>
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