- Committing to raise the Personal Allowance to £12,500 and the Higher Rate Threshold to £50,000 by 2020-21
The Personal Allowance is the amount of income you can earn before you start paying income tax. It is currently £11,000 this year, and will rise to £11,500 in 2017-18. The point at which you pay the higher rate of income tax will increase from £43,000 this year, to £45,000 in 2017-18.
Once the Personal Allowance reaches £12,500, it will increase in line with inflation.