Last year’s Budget revealed that that the 2015/16 personal allowance would be £10,500, but the Autumn Statement added a further £100 bringing the figure to £10,600. However, many people do not even use the current personal allowance (£10,000 in 2014/15), and there
remains a £2,500+ gap between it and the starting point for National Insurance contributions (£8,060 in 2015/16).
At the other end of the income scale, about 1 in 50 taxpayers will have no personal allowance in 2015/16 because their income exceeds £121,200 at which point their allowance is tapered to nil. Further increases to the personal allowance are due in 2016/17 and 2017/18, taking it up to £11,000 and extending the income level at which the personal allowance is lost to £122,000.
Download the full bulletin
