Income Tax
- The personal allowance for under-65s increases from £8,105 to £9,440.
- The personal allowance for 65-74 year olds is frozen at £10,500.
- The personal allowance for those aged 75 and over is frozen at £10,600.
- The amount you need to earn before becoming a 40% taxpayer falls to £41,450 from £42,475.
- The tax rate for additional rate payers, charged on earnings above £150,000, is cut from 50p to 45p.
- The amount of tax additional rate payers pay on dividend income is cut to 37% from 42.5%.
Benefits and Tax Credit
- Child benefit is frozen at £20.30 a week for the first child and £13.40 a week for each subsequent child.
- The full basic state pension rises by 2.5% to £110.15 a week.
Capital Gains Tax
- The CGT threshold rises from £10,600 to £10,900.
Inheritance Tax
- The IHT threshold is frozen at £325,000 for the third year running, and will remain there until April 2018.