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40p tax threshold could be raised

01 Aug 2014

Prime Minister David Cameron recently hinted that he would ‘love’ to raise the threshold of the higher tax rate.

In a speech made to workers in Warrington, Mr Cameron acknowledged that many ‘who don’t see themselves as fundamentally wealthy’ are paying the 40% rate, which applies to those earning over 41,865 per year.

According to the Office for National Statistics, the average income for those in full time employment is 29,300 for men and 23,600 for women.

Mr Cameron was keen to qualify his comments, saying: ‘I understand the problem with the 40p rate kicking in when people are not earning a lot of money, and I have to look very carefully at the books before I can make any promises’.

He added: ‘Now I would love to be able to stand here and say we are going to sort all this out, we will raise the thresholds of all these tax rates. I can’t make that promise today’.