Treasury written question – answered at on 19 March 2012.
To ask the Chancellor of the Exchequer what estimate he has made of the number of people resident in Redcar constituency who will no longer pay income tax consequent (a) on the proposed increase in the personal allowance from April 2012 and (b) on the proposed increase in the personal allowance to £10,000 by April 2015.
The 2011 Budget announced a £630 cash increase in the personal allowance for under-65s to £8,105 in 2012-13 (£240 above indexation), with an equivalent reduction in the basic rate limit to leave the higher rate threshold unchanged.
As a result of these measures, the Government estimated that in 2012-13, 260,000 of the lowest income taxpayers will be removed from tax altogether. Information at Government office region is provided in the following table.
Government office region | Number taken out of income tax (Thousand) |
North East | 10 |
North West and Merseyside | 28 |
Yorkshire and the Humber | 26 |
East Midlands | 18 |
West Midlands | 25 |
East of England | 25 |
London | 30 |
South East | 32 |
South West | 24 |
Wales | 10 |
Scotland | 21 |
Northern Ireland | 9 |
Address abroad/unknown | 3 |
All | 260 |
These estimates are based on the 2007-08 Survey of Personal Incomes, projected using economic assumptions consistent with the Office for Budget Responsibility’s March 2011 economic and fiscal outlook.
Reliable estimates are not available at parliamentary constituency level, due to greater uncertainties in projections for small geographical areas and small sample sizes.
The Government are committed to supporting lower and middle income earners by raising the personal allowance to £10,000, and removing the lowest income individuals out of income tax. Decisions on future changes in the personal allowance will be taken as part of the annual Budget process in the context of the wider public finances.
Yes1 person thinks so
No0 people think not
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