Personal tax allowance levels

[Gerry557]

I think the between 2000 and 2010 the personal allowance went from £4385 to around £6474. What would it like be today if it has risen at the same levels.

I know the Coalition increased it more rapidly from 2010.

I suspect it would be £9k to £10k range possibly less as inflation was probably lower. So are we still "ahead" even with frozen levels?

[chrissyr]

So up about 50% in 10 years so 2010 to 2020 you would get to about 10k. Add in 20% for the next 4 years it's about 12k.

So we haven't been spoilt

Missout the the next 4 years (20%) and your down about £2k or so.

[Tedx]

£4385 @ 3% over 24 years is £9000.60

https://www.thisismoney.co.uk/money/sav ... lator.html

[chrissyr]

The rise between 2000 and 2010 is 3.9% pa (using your calculator) so 3% is a random made up number to get to a figure you want - your not a tory advisor are you

[Tedx]

The rise between 2000 and 2010 is 3.9% pa (using your calculator) so 3% is a random made up number to get to a figure you want - your not a tory advisor are you

Aye, but whats the number between 2000 and 2024? Inflation has been pretty low since the GFC (the last couple of years notwithstanding)

Saying that, yes I did just pluck 3% out of the air. It sounded about right.....oh hang on, that's the phone.

'....Hello?....yes....yes....no problem. Ok, I'll see you on Monday. Thanks Rishi!'

[gryffron]

I think the between 2000 and 2010 the personal allowance went from £4385 to around £6474. What would it like be today if it has risen at the same levels.

Using actual inflation calculated by https://www.bankofengland.co.uk/monetar ... calculator

£4385 in 2000 was worth £5394 in 2010. So it went up in real terms under Labour. 2.0% pa. (10th root of 6474/5394)

£12570 today was worth £8421 in 2010.
So it has increased by 1.9%pa in real terms under coalition/Tory to date. (14th root of 8421/6474)
Barely any change.

So we are currently still WAY ahead of where it was in 2000 or 2010 despite the recent freeze.

Gryff

[Gerry557]

I went to the BoE calculator and the £6474 would be worth £9663 with inflation.

This assumes that things would rise with inflation. So potentially ahead. Using the same method from 2000 would be £8052.16. To 2010 it was £5394.77 this figure though is less than what was being paid.

Should thresholds rise a bit faster than inflation then. Probably if you are a pensioner, hopefully if you are a worker.