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Latest budget news

06 april 2019

Latest budget news

New tax year 2019: The changes coming into effect today, from income allowance to buy-to-let relief

The new tax year starts on today and in general taxpayers will have more money in their pocket after increases to allowances come into force. Those selling shares or buy-to-let properties, however, will be hit hard.

Increases to the tax-free personal allowance announced in last year’s Budget come into effect, alongside a wealth of other proposals designed to allow us to keep more of our hard-earned cash.

But there are also a range of “stealth” increases that could catch out unsuspecting taxpayers.

The new tax year begins today, April 6. Here is Telegraph Money’sguide to the changes.

Income tax

The good news is that the tax thresholds are on the move again, meaning we will all pay a little less tax from today.

The tax-free personal allowance will increase from £11,850 to £12,500 and the higher-rate allowance will increase from £46,350 to £50,000. This means that basic-rate taxpayers will save £130 a year, while higher-rate taxpayers will save up to £860.

This is part of the Conservative Party’s long-held commitment to lift more people out of paying income tax altogether, a pledge that dates back to George Osborne’s days as Chancellor of the Exchequer.

Patricia Mock, of consultancy Deloitte, said: “Taxpayers will make a saving, but this is a costly move for the Exchequer – estimated to cost £2.8bn in 2019-20.”