Tax threshold freeze trebles to £25 billion

Research carried out by think tank the Resolution Foundation has suggested that the size of the UK's six-year 'stealth tax' threshold freeze has nearly trebled to £25 billion.

Research carried out by think tank the Resolution Foundation has suggested that the size of the UK's six-year 'stealth tax' threshold freeze has nearly trebled to £25 billion.

The figure is significantly higher than the previous forecast of £9 billion announced during the 2021 Budget.

A small number of tax thresholds have been frozen since 2021/22 and are set to remain frozen until April 2028. The think tank found that next year's threshold freeze will raise £12 billion a year by the time of the final freeze in 2027/28.

Adam Corlett, Principal Economist at the Resolution Foundation, said:

'High inflation has pushed up the projected revenue take from the government's personal tax threshold freeze to £25 billion a year – almost triple the amount forecast when the freeze was introduced. But higher-income households will be the ones most affected by next year's major tax rises.

'High inflation also means benefits are being uprated by 10.1 in April, which will boost low-income households' finances, although benefits are only set to fully catch up with price rises after April 2024's uprating.'

Internet link: Resolution Foundation website

Always Better
at giving a first class service


3 Kingfisher Court,
Bowesfield Park,
Stockton on Tees,
TS18 3EX



T : +44 (0) 1642 660 300
E : theteam@anderson-barrowcliff.co.uk

We use cookies on this website, you can find more information about cookies here. © 2024 Anderson Barrowcliff LLP. All rights reserved. powered by totalSOLUTION Registered company number: OC334152. Registered company address: Anderson Barrowcliff Limited Liability Partnership, 3 Kingfisher Court, Bowesfield Park, Stockton on Tees, Co Durham TS18 3EX Registered to carry on audit work in the UK and regulated for a range of investment business and consumer credit activities by the Institute of Chartered Accountants in England & Wales.