Freeze to income tax thresholds extended to 2031

It means the current income tax bands will stay as they are until at least April 2031, for taxpayers in England, Wales and Northern Ireland.

A freeze on income tax thresholds has been extended to the 2030-2031 tax year, a move which is set to raise £7.6 billion in revenue by 2030 and increase the number of UK taxpayers.

It means the current income tax bands will stay as they are until April 2031 for taxpayers in England, Wales and Northern Ireland.

Scotland’s income tax bands are set by the Scottish government.

In the past, thresholds were increased each year in line with Consumer Prices Index (CPI) inflation, therefore better reflecting the rising cost of living.

But most thresholds have been held at their 2022-23 levels until April 2028 – and this has been extended for another three