New Tax Year – 1,000 low earners in East Lothian taken out of Income Tax

Today is the start of the new tax year and 1,000 low earners in East Lothian will be taken out of income tax altogether. This is due to changes in the national tax system, implemented by Liberal Democrats in the Coalition Government

A further 50,500 people in the county will also find their tax situation better off, paying up to £200 less per year in income tax.

When the coalition was formed after last years General Election, the two parties agreed to implement a key Liberal Democrat policy that the personal allowance for income tax should be increased in order to help lower and middle-income earners.

The change is being funded with the money that would have been used to pay for the increase in Employee National Insurance thresholds proposed by the Conservatives, as well as revenues from increases in Capital Gains Tax rates for non-business assets.

There was further agreement between the two parties to a longer-term policy objective of further increasing the personal allowance to £10,000, making further real terms steps each year towards this objective. The Chancellor announced another planned increase next year toward this in his recent Budget. Achieving this aim would provide much more tax fairness towards the poorest in our society, something Liberal Democrats are committed to.

Liberal Democrats are continuing to push for yearly increases to the allowance until we reach £10,000 as the threshold. This would provide much more tax fairness towards the poorest in our society.