Treasury written question – answered at on 14 June 2011.
To ask the Chancellor of the Exchequer what assessment he has made of the effect on low-income families of the increase in the income tax personal allowance in April 2011.
In the June 2010 Budget the Government announced a £1,000 increase in the income tax personal allowance for those aged under 65, taking it from £6,475 in 2010-11 to £7,475 in 2011-12. HM Revenue and Customs estimates that this will remove over 800,000 of the lowest income taxpayers from income tax altogether and will benefit around 23 million basic rate taxpayers by an average of £160 a year in real terms. This is part of our long-term objective to increase the personal allowance to £10,000, with real terms steps in that direction every year.
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