VerbatimParliament, as it happens

Taxation

Asked by Noah LawLabourTreasuryTabled Answered 26 March 2025UIN 40117

The question

To ask the Chancellor of the Exchequer, whether she has considered (a) removing the tapering-off of the personal allowance and (b) reducing the threshold for the additional rate of tax.

Answered by James Murray

The withdrawal of the Personal Allowance affects those with income over £100,000 a year, reducing by £1 for every £2 above this threshold until it is fully withdrawn at £125,140.

The additional rate threshold of income tax is currently £125,140, following its reduction from £150,000 in Autumn 2022. The Government remains committed to maintaining strong public finances and ensuring those on higher incomes contribute a fair share.

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