A petition calling for an increase in the Personal Tax Allowance from £12,570 to £20,000 has gained significant public support, with over 133,915 signatures. If a petition reaches 100,000 signatures, it is considered for a Parliamentary debate, and an update on the UK Government’s petitions website confirms that this is now being reviewed.
The petition, started by Alan David Frost, argues that raising the tax-free income threshold would:
- Help low earners move off benefits.
- Allow pensioners to receive a better income.
- Inject more cash into the economy, leading to economic growth.
What is the Personal Tax Allowance?
The Personal Allowance is the amount of income a person can earn before they have to pay income tax.
- The standard Personal Allowance is £12,570.
- If your income exceeds £100,000, your allowance decreases—losing £1 for every £2 earned over £100,000.
- This allowance has been frozen since 2021 and will remain at this level until April 2028.
Why is There a Call for an Increase?
The petition highlights concerns that:
- Pensioners are being taxed on their State Pension if their total income exceeds the allowance.
- The frozen threshold has not kept up with inflation or wage growth, meaning more people are being pushed into higher tax brackets.
- Raising the allowance could reduce reliance on benefits and stimulate economic growth by putting more money into people’s pockets.
What Happens Next?
Once a petition reaches 10,000 signatures, the Government must respond. Since this petition has exceeded 100,000 signatures, it is now being considered for debate in Parliament.
Other Tax Allowances Available
Marriage Allowance
If you are married or in a civil partnership, and your income is below £12,570, you can transfer up to £1,260 of your Personal Allowance to your partner. This can reduce their tax bill by up to £252 per year.
Married Couple’s Allowance
If you or your partner were born before 6 April 1935, you may qualify for Married Couple’s Allowance, which could further reduce your tax bill.
With growing public support, the call to raise the Personal Tax Allowance to £20,000 could lead to a Parliamentary debate. Many believe this change would help low earners and pensioners, reduce reliance on benefits, and boost the economy. However, the Government’s response and decision on this proposal remain to be seen.
FAQ’s
What is the Personal Tax Allowance?
The Personal Allowance is the amount of income you can earn before paying income tax. It is currently set at £12,570.
Why is there a petition to raise the Personal Tax Allowance?
Supporters argue that increasing the allowance to £20,000 would help low earners, reduce pension tax burdens, and boost the economy.
How many signatures does the petition have?
As of now, the petition has 133,915 signatures, meaning it is being considered for a debate in Parliament.
When was the Personal Allowance last changed?
The Personal Allowance has been frozen at £12,570 since 2021 and will remain at this level until April 2028.
How does the Personal Allowance change for higher earners?
For every £2 earned over £100,000, £1 of the Personal Allowance is lost, meaning it is fully removed at £125,140.
What tax benefits are available for married couples?
Married couples may be eligible for Marriage Allowance or Married Couple’s Allowance, which can reduce their tax bill.
Will the government raise the Personal Tax Allowance?
The government has not confirmed any changes yet, but the petition reaching 100,000 signatures means it will be considered for debate.
