Is Rishi Sunak planning a stealth raid on incomes?


Is Rishi Sunak planning a stealth raid on incomes? Chancellor looks at freezing allowances and scrapping increases to pay thresholds in next month’s Budget

  • Chancellor believed to be considering freezing personal income tax allowances 
  • Looking at axing planned increases to the £12,500 and £50,000 thresholds 
  • Move would mean tens of millions paying more and bring in £6bn for Treasury

Rishi Sunak is believed to be considering freezing personal income tax allowances in next month’s Budget.

The Treasury is looking at scrapping planned increases to both the £12,500 and £50,000 thresholds in a move that would mean tens of millions effectively paying more. 

The stealth tax raid could bring in up to £6billion for Treasury coffers. The amount someone can earn each year before paying income tax is £12,500. 

Rishi Sunak (pictured) is believed to be considering freezing personal income tax allowances in next month’s Budget.

With inflation, that is due to rise to an estimated £13,250 by the 2024 election. 

The £50,000 threshold, above which people pay 40 per cent tax, is due to rise to about £53,000.

The freeze would be attractive to the Chancellor because it would not break the Tory manifesto pledge not to raise income tax. 

The Treasury declined to comment.

Read more at DailyMail.co.uk