Tax rates and allowances for 2011/12

The Treasury has published tables of income tax rates and allowances, NIC rates and limits, and tax credits rates and thresholds for the tax year 2011/12.

David Gauke told MPs: ‘There is a statutory obligation on the Treasury to make an order to replace the existing amounts of income tax rate limits and personal allowances for the following tax year. The 2010 indexation order has been made today and sets out the indexed amounts of income tax rate limits and personal allowances for 2011/12.

‘In the case of the personal allowance and basic rate limit, this order will be over-ridden by the Finance Bill next year that will legislate for the changes announced at Budget 2010. The relevant regulations and orders for NICs and tax credits will be laid in spring 2011.’

The indexation order is The Income Tax (Indexation) Order, SI 2010/2879.