Budget 26: Income tax threshold freeze remains until April 2031

The government has confirmed that frozen income tax thresholds will continue until April 2031, alongside the continued freeze on Inheritance Tax (IHT) nil-rate bands until 2030. The measures mean taxpayers could face higher bills as incomes and asset values rise, despite no change to the relevant thresholds. The income tax personal allowance remains at £12,570, while the higher-rate threshold stands at £50,270 and the additional-rate threshold at £125,140. The income tax threshold freeze was previously extended by former chancellor Rachel Reeves in her November 2025 Budget. The ...