Income Tax Unfortunately, no changes from the Chancellor's November pre budget speech. Basic Personal Tax Allowance Frozen for 2003/04. Effect: This means that you technically will pay more tax as your earnings increase over the year but your allowance has not. Even some people who are currently non-taxpayers may end up paying tax next year as allowances are frozen.
They have however been increased for the over 65s. Allowances: Personal Allowance: 2003/04 £4,615 (2002/2003 £4615) 65-74 Allowance: 2003/04 £6,610 (2002/2003 £6,100) 75+ Allowance: 2003/04 £6,720 (2002/2003 £6,370) Rates of Tax were also frozen. What does this mean?
Our view: The average basic rate taxpayer in the UK will pay an extra £25 a year, higher rate tax payers will pay an extra £50. It is better news for older people with allowances being increased over and above inflation. Visit the Tax Tables in Savings Adviser.com.