Press release

Chancellor puts £377 back into taxpayers’ pockets as basic rate threshold cut to 19%

23 March 2022

Rachel McEleney, associate tax director, Deloitte, comments:

“The Chancellor announced today that the basic rate of income tax will reduce from 20% to 19% from 6 April 2024. This should save most higher and additional rate taxpayers about £377 in 2024/25 compared to 2023/24.

“The rate reduction does not affect the taxation of non-savings non-dividend income of individuals living in Scotland, as the Scottish Government sets its own rates of income tax for these types of income. The reduced rate will apply to taxable savings income, irrespective of where the individual lives.

“The reduction in the basic rate of income tax will reduce the amount that charities receive from the Government as a top-up on gift aid donations, but transitional rules will be put in place to defer the reduction by three years until April 2027.”

 

 

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Deloitte has a range of spokespeople available to comment on today’s Budget. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:

• Debapratim De - Senior economist (07789 036 944)

• Amanda Tickel - Head of tax policy (07920 270 964)

• Rachel McEleney - Personal tax (07826 891 752)

• Alison Lobb – Corporate tax (07826 952 940)

• James Warwick - Employment tax (020 7303 6924)

• Andrew Clarke – Indirect tax (07824 895 798)

• Katherine Lampen – Climate change/sustainability (020 7303 6924 / 07920 270 964)

• Gerry Biddle – Business rates (07826 952940)

 

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