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BUDGET 2012: Personal allowance raised to £9,205
The personal tax free allowance will increase by £1,100 next year to £9,205, the Chancellor of the Exchequer, George Osborne announced in this year’s Budget.
From next April people will be able to earn up to £9,205 before they have to pay any tax.
This is the largest increase in the level of the personal allowance in both cash and real terms for the past 30 years and the largest real personal tax cut for the median earner in over a decade, according to the Government.
Osborne said: “This coalition government believes that the best way to support working people on the lowest incomes is to take them out of tax altogether.
“And the best way of getting money directly into the pockets of working families on middle incomes is to increase the amount of their earnings they can keep before they pay tax.
“That is why this government has set itself the goal of raising the personal tax free allowance to £10,000 and we've promised real increases every year to reach that.”
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