In the first in a series of AccountingWEB articles summarising the key measures in Finance Act 2014, Andrew Goodall sets out the main income tax provisions in Part 1 of the Act.
Income tax rates and allowances
Section 1 fixes the main rates of income tax – 20%, 40% and 45% – for 2014/15. The basic personal allowance for those born after 5 April 1948 is £10,000 and basic rate limit is £31,865.
The higher rate threshold – the sum of the personal allowance and the basic rate limit – is increased by 1%, and statutory indexation is over-ridden. Section 2 fixes the basic personal allowance and the basic rate limit for 2015/16, at £10,500 and £31,785 respectively.
The basic p...