The Chancellor announced that the standard personal allowance will increase to £10,000. This represents a £560 increase for basic rate taxpayers.
The higher rate band will apply to income over £31,865.
Who will be affected?
This measure will affect all individual taxpayers with taxable income of less than £100,000 per year.
The increase in the standard personal allowance will take effect from April 2014.
The increases in the standard personal allowance will primarily benefit basic rate taxpayers, though most higher rate taxpayers will also benefit to some extent.