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This is within touching distance of delivering the commitment on the front page of the Liberal Democrat manifesto to raise the tax free allowance to £10,000.
We want to take people on the minimum wage out of income tax, raise that tax free allowance to £12,500.
Increasing the personal tax free allowance to £11,000 year by 2015 – benefiting 27 million people and taking four million out of income tax altogether.
Unlike a cut in the basic rate, raising the tax free allowance does not have the effect of reducing everyone's tax burden by the same fraction.
They said several other tourists had helped them by shipping gems abroad using their duty free allowance of £10,000 – earning themselves £4,000 in the process.
■ Trick 3: Under the new system the above strategy would account for £700 out of the £1,000 tax free allowance.
Similar(47)
New tax-free allowance of £5,000.
*£3,000 can be given away each year tax free, using the annual tax-free allowance.
There will be a tax-free allowance of £135,000 on each transaction.
For over-75s, the tax-free allowance will rise to £10,000 by 2011.
Raising the tax-free allowance is the only way to take people out of tax altogether.
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