The new tax thresholds for the starting, basic and higher rate tax bands have been announced. The tax legislation requires the Government to automatically increase the thresholds in line with the rate of inflation at the previous September.
From 6 April 2003,
the threshold up to which the starter rate of tax applies and from which the basic rate of tax applies increases from £;1,920 to £;1,960
the threshold up to which the basic rate of tax applies and from which the higher rate of tax applies increases from £;29,900 to £;30,500.
Although the RPI year-on-year increase at September 2002 was 1.7%, the statutory rounding rules mean that the thresholds actually increase by 2%.
Note that these new thresholds will apply for the coming tax year unless the Chancellor decides to announce different thresholds in the Budget on 9 April.
(Source: The Income Tax (Indexation) Order 2003 - www.inlandrevenue.gov.uk/si/2003-0840.pdf )
...back to 4 April 2003
For Payroll and Human Resource Professionals
