2,500 people in Bath and North East Somerset to be lifted out of Income Tax

From today, Wednesday 6 April 2010, nearly 900,000 people will be lifted out of paying Income Tax while around 23m basic-rate tax payers will get an extra £200 in their pockets.

The Income Tax threshold, the point from which people start paying their taxes, will be raised by £1,000 to £7,475.

This increase is the first step toward the Liberal Democrat commitment to raise the Income Tax threshold to £10,000, with a further rise of the threshold due in 2012.

In Bath and North East Somerset, this is expected to mean around 2,500 people will no longer have to pay Income Tax and a further 71,000 will get £200 extra in their pockets.

Commenting, Don Foster said:

“At a time when people are worried about their personal finances, this tax cut will help millions of people. In Bath and North East Somerset, 71,000 people will get an extra £200 to spend this year and I know this will make a real difference.

“I am proud that thanks to Liberal Democrats in Government, almost a million people will be lifted out of paying tax altogether across the country, while 23m people will get a tax cut.

“One way we are paying for this is by taxing the banks more, £10bn more, so they pay their share. This tax cut is straight from the front page of our manifesto to the pockets of 23m tax payers.”

ENDS

Notes to Editors:

1. The raising of the Income Tax threshold to £10,000 was a priority for the Liberal Democrats in the General Election: it was one of four policies we put on the front of our manifesto (along with the pupil premium; a rebalanced economy; and long-lasting political reform).

1. We have already started to deliver on all four of those key priorities.

1. By 2012/13, the Income Tax Threshold will be raised to £8,105, meaning that Liberal Democrats will have lifted 1.1 million people out of paying tax and will have given 25 million people a tax cut worth £326.

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Published and promoted by Chris Fox on behalf of the Liberal Democrats, both at 4 Cowley Street, London, SW1P 3NB.