As part of the Spring Statement 2022 announcement, the Chancellor, Rishi Sunak, announced that in 2024 when the rate of inflation is predicted to be back in control, the basic rate of income tax will be cut to 19%, which is expected to benefit over 30 million people.
This will be the first cut in 16 years to the basic rate of income tax.
Income tax drop brought forward to 2023 and then cancelled
As part of the governments Growth Plan 2022, it was announced that the drop of basic income tax basic rate would be brought forward to April 2023.
Due to market instability, on Monday 17th October the new Chancellor Jeremy Hunt cancelled the proposal and announced that the basic rate of Income Tax would remain at 20% for the first able future.
PAYadvice.UK 24/3/2022 updated 19/10/2022
