MP welcomes changes to tax

More than 18,000 people in East Sussex will be lifted out of paying tax altogether and 173,900 will see a tax cut, according to Seaford MP Norman Baker, following the Autumn Statement.

From April next year, the personal tax allowance will rise to £9,440, £235 more than was initially planned in this year’s Budget and will see more than two million people lifted out of tax nationally, and 24 million people receive a tax cut. The changes mean that someone who earns £10,000 a year who would have been taxed £1,180 in 2010/11 for income and national insurance will in 2013/14 be taxed only £380. The announcement builds on the previous rises announced by the coalition and is a further huge step to create a personal tax allowance of £10,000.

The Autumn Statement also included a vast package of measures to clamp down on tax avoidance and evasion. The anti-avoidance and evasions measures include: increasing the fund to tackle avoidance and evasion to more than £1billion - bringing in £9billion, the introduction of the first ever General Anti-Abuse Rule and 2,500 more tax inspector to go after avoiders and evaders.

Mr Baker said, “It was a page one commitment by the Lib Dems to raise the personal tax allowance to £10,000, and we are well on our way to fully achieving that. It is quite right that in these tough times, if money is available we direct it to those on the lowest income and with the largest ever cash rise to the personal tax allowance being announced, over 18,000 people locally are being taken out of tax altogether, providing some welcome assistance.

“At the same time, we have sent a clear message to those who avoid or evade tax – ‘we are coming after you’.”