This week the Conservative government have announced that they will increase the personal allowance to £12,500 and the higher rate threshold to £50,000 by 2020.
The finance Act 2014 increased the personal allowance to £10,500 for 2015/16. David Cameron quoted “Despite everything, I’ve made sure we provide some relief to taxpayers in our country – especially the poorest. No income tax until you earn £10,000 a year – and from next April, £10,500 a year…”
A future Conservative Government has stated that they will raise the tax-free personal allowance from £10,500 to £12,500.