• Text size      
  • Send this article to a friend
  • Print this article

Yearly £195 boost for higher-rate taxpayers

HIGHER-RATE taxpayers will be £195 a year better off after the 40% threshold was raised for 2014-15 by 1% to £41,865, alongside the higher £10,000 personal allowance.

It will rise by a further 1% the following year to £42,285. The failure to keep up with inflation, however, means the threshold will be £5560 lower in 2015-16 than if it had risen with inflation since 2010, according to the Institute of Fiscal Studies. The ending of the higher tax allowance for over-65s will mean "a sneaky kick in the teeth for those of us born between March 1938 and March 1948", one Herald reader has claimed.

The over-65s already have the £10,500 personal tax allowance, which everyone else will get from 2015-16, which means the disappearance of a £212 differential.

Contextual targeting label: 
Business

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

221082