In 2011–12, the personal allowance for people under age 65 will rise by £1,000 to £7,475.
The recommendation by the Office of Tax Simplification (OTS) to abolish community investment tax relief has been ignored.
The chancellor of the exchequer announced in the Budget that the personal allowance for people under 65 will rise by a further £630 to £8,105 in 2012-13.
The government is to look at merging income tax and National Insurance, chancellor of the exchequer George Osborne has announced.
There have been small but significant changes to the
thresholds in the 2011 income tax system, which will result in thousands of
taxpayers being placed in new tax bands.