What does the Income Tax cut mean for you?

When Chancellor Kwasi Kwarteng announced his changes to the basic rate of Income Tax you may have wondered what it meant for you.

From 6 April next year, the basic rate of Income Tax will be reduced by one percentage point – from 20 per cent to 19 per cent.

This cut to Income Tax was first announced by former Chancellor Rishi Sunak but has now been brought forward a year in the new Government’s changes to taxation.

• Non-savings, non-dividend income for taxpayers in England, Wales and Northern Ireland
• The savings basic rate which applies to savings income for taxpayers across the UK
• The default basic rate which applies to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax.

Link: Income Tax factsheet