The Budget in brief

Chancellor George Osborne's Budget for the year ahead has shaken up the tax system. Here's how it will affect you.

One of the main headline-grabbing stories from this week's budget was the news that the personal allowance will rise to £9,205 from April 2013, a bigger jump than expected, and not far off the coalition's end goal of £10,000. As long as your annual income is below £100,000, that's how much you'll be able to earn before you start paying income tax.

From 6 April this year, the allowance rises from £7,475 to £8,105. However, also from April 2013, the income-tax threshold for the 40% tax band will be cut from £42,475 to £41,450, dragging another 300,000 people into the higher-rate tax band.

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