Is Rishi Sunak planning a stealth raid on incomes? Chancellor looks at freezing allowances and scrapping increases to pay thresholds in next month’s Budget
- Chancellor believed to be considering freezing personal income tax allowances
- Looking at axing planned increases to the £12,500 and £50,000 thresholds
- Move would mean tens of millions paying more and bring in £6bn for Treasury
Rishi Sunak is believed to be considering freezing personal income tax allowances in next month’s Budget.
The Treasury is looking at scrapping planned increases to both the £12,500 and £50,000 thresholds in a move that would mean tens of millions effectively paying more.
The stealth tax raid could bring in up to £6billion for Treasury coffers. The amount someone can earn each year before paying income tax is £12,500.
Rishi Sunak (pictured) is believed to be considering freezing personal income tax allowances in next month’s Budget.
With inflation, that is due to rise to an estimated £13,250 by the 2024 election.
The £50,000 threshold, above which people pay 40 per cent tax, is due to rise to about £53,000.
The freeze would be attractive to the Chancellor because it would not break the Tory manifesto pledge not to raise income tax.
The Treasury declined to comment.