UK Tax News from TaxPenny

It has been reported that the Chancellor, George Osborne, has agreed a last minute deal within the coalition Government that will see the current top rate tax band of 50 percent, dropped to 45 percent from the start of the 2013/2014 tax year.

The deal was agreed to put in place a ‘tycoon tax’ proposed by the Liberal Democrats.

Also, as part of the last minute talks, the tax free personal allowance is to be raised at a more rapid rate when the tycoon tax is introduced.

Try the 2012/2013 Custom tax calculator to see how these figures would effect you. You can change the bands, allowances, rates and more!

For example:

• An individual earning £18,000 in 2012/13 would pay £1,979 in income tax, whereas with a £10,000 personal allowance in 2013/2014, tax paid would be £1,600. £379 saving.

• An individual earning £180,000 in 2012/13 would pay £58,126 in income tax, whereas under the proposed plans, in 2013/2014 the tax paid would be £57,626. £500 saving.