Budget 2016: Basic-rate tax increased to £11.5k

Osborne said that he would increase the tax-free personal allowance to rise to £11,500 from the £11,000 proposed in last year's Budget. The new rate will come into effect in April 2017. The rate will increase from £10,800 implemented last April.  The threshold at which people pay 40% tax will also rise, this time from £42,385 to £45,000, again to come into effect in April 2017.Aegon head of pensions Kate Smith said: "Accelerating the increase in the income tax thresholds is good news as it will increase people's take home pay. "The lower income tax band is already increasing to £11...