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Taxation: Personal Allowance

Volume 716: debated on Tuesday 5 January 2010


Asked by

To ask Her Majesty's Government how many extra low paid workers and pensioners are forecast to pay income tax because of the freezing of personal allowances for 2010–11. [HL797]

To ask Her Majesty's Government how much extra revenue is forecast to be collected from freezing income tax personal allowances in 2010–11; and how much of that will come from those who do not pay income tax in 2009–10 because they earn less than the personal allowance. [HL798]

For 2010-11 the personal allowance will be maintained at its 2009-10 level of £6,475. By freezing the allowance at its current level, the allowance increases in real terms compared to the change in inflation, as measured by the Retail Price Index, of minus 1.4 per cent in the year ending September 2009. This will prevent individuals with incomes between £6,385 and £6,475 paying income tax; no extra revenue will be raised.