Budget Resolution 5 — Basic Rate Limit and Personal Allowance for Tax Year 2019-20 — 1 Nov 2018 at 16:48

The majority of MPs voted to increase the income thresholds for both starting to pay income tax, and for being charged income tax at the higher rate.

The budget resolution supported by the majority of MPs in this vote was:

• That—
• (1) For the tax year 2019-20, the amount specified in section 10(5) of the Income Tax Act 2007 (basic rate limit) is “£37,500”.
• (2) For the tax year 2019-20, the amount specified in section 35(1) of the Income Tax Act 2007 (personal allowance) is “£12,500”.
• (3) Accordingly, for the tax year 2019-20—
• (a) section 21 of the Income Tax Act 2007 (indexation of basic rate limit and starting rate limit for savings) does not apply in relation to the basic rate limit, and
• (b) section 57 of the Income Tax Act 2007 (indexation of allowances) does not apply in relation to the amount specified in section 35(1) of that Act.
• And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

The personal allowance, the amount of income someone can generally have before paying income tax, was £11,850 in 2018-19.^[1]

The basic rate limit, the threshold below which taxable income is taxed at the basic rate, was £34,500 in 2018-19.^[1]

• [1] Income Tax rates and allowances: current and past, HM Revenue and Customs website

Debate in Parliament |