- The government has announced it will not extend a freeze on income tax and national insurance thresholds.
- In the March 2021 Budget it was announced that the income tax Personal Allowance and higher rate threshold, were to be frozen until April 2026. In the Autumn Statement 2022, it was announced that these freezes would be extended to April 2028. Previously, they had usually risen each year in line with the Consumer Prices Index.
- The freeze will come to an end in April 2028, from which date these thresholds will once again be increased in line with inflation.
- The government has also confirmed its manifesto pledge that it will not increase the rates of income tax or national insurance (for individuals).
- Timing: Inflationary increases to income tax and NIC thresholds are scheduled to resume from the 2028/29 tax year.
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