How has the budget affected personal allowances?
From 6 April 2012, the personal allowance for those aged less than 65 will increase to £8,105 and the basic rate tax limit will be reduced to £34,370.
The Chancellor has announced for 2013/14 the personal allowance will increase to £9,205 and the basic rate limit will reduce to £32,245. The personal allowance will be available to people born after 5 April 1948.
The Chancellor has also announced that from 6 April 2013 the age-related personal allowances (currently available to people aged over 65) will be frozen at 2012/13 levels until they align with the personal allowance.