Budget: Basic rate tax cut to 20p

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The government will reduce the basic rate income tax rate to 20p from April 2008 but intends to remove the 10p non-savings tax rate and increase the higher rate tax threshold.

In his earlier statement to the House of Commons, Brown also said he is cutting the tax regime to just two income tax rates by removing the 10p tax level for non-savings and will then increase the higher tax rate threshold from £38,000 to £43,000 from 2009. At the same time, however, he is also increasing the national insurance contribution rate threshold from £38,000 to £43,000 in 2009 to deliver “a tax system for income that has just two rates and two thresholds”. If you have any comments you would like to add to this story or would like to speak to its author about a similar subject,...

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