98,000 HIGHLANDERS WILL SEE TAX CUT TOMORROW‏ - ALEXANDER

5-Apr-2012

An estimated 98,000 Highlanders on low and middle incomes will see
their income tax cut tomorrow as a result of the increase in the
amount that people can earn tax free. An additional 5,300 Highlanders
will be lifted out of paying tax altogether.

Tomorrow is the start of the new tax year, and the income tax
threshold will rise by £630 to £8105. This follows the increase of
£1000 last year. The Budget announced a further rise in the tax free
threshold of £1100 - the largest ever - to take place next year.

These moves by the coalition government are being made to fulfil the
Liberal Democrat election pledge to raise the amount people can earn
before paying income tax to £10,000.

Local Liberal Democrat MP and chief secretary to the Treasury, Danny
Alexander, said:

"On Friday, the personal allowance, the bit of your income you get
that you don't pay tax on, will go up. When the Liberal Democrats
entered the Coalition Government this stood at £6,475, now it is
£8,105. This is a key Liberal Democrat policy being delivered by the
coalition government.

"There is a further rise to £9,205 coming next year – that is the
biggest income tax cut for working people for a generation. It has
come from the front page of the Liberal Democrat manifesto, straight
into your pocket: an estimated 98,000 basic rate tax payers in the
Highlands will receive a £130 tax cut this year, on top of the £200
tax cut last year, and another £220 coming next year.

"Not only that, but around 5,300 of the lowest paid Highlanders will
be lifted out of paying Income Tax altogether from today. These
changes will make a real difference to people across the Highlands.

"We are on track to meet the goal that people should earn more than
£10,000 before they pay any income tax. Of course, we have had to take
a lot of very difficult decisions to clean up the economic mess that
Labour left, to ensure our country pays its way. But by asking the
wealthy to pay more and cutting taxes for 24 million working people
across the UK, we are making lasting changes that give practical help
to working people."

ENDS