Increased personal allowance 'may help people save'

Conservative and Liberal Democrat plans to increase the income tax threshold will have a real impact on people's bank balances, it has been claimed.

The new coalition government has pledged to raise the personal allowance for income tax, in order to help lower and middle-income earners.

And according to the TaxPayers' Alliance, consumers will have money at their disposal as a result.

"This is not just good news for taxpayers' wallets; it will also nurture the economic recovery," said Matthew Elliott, chief executive at the organisation.

Should the tax threshold be raised to £10,000, consumers may have more money at their disposal to place in savings accounts.

Under new individual savings account Isa rules, each UK adult is able to place £5,100 in a tax-free cash Isa every year, and the equivalent amount in a stocks and shares account.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-05-13 13:35:38 © Moneyextra.com