Hands: a tax cut of £220 for 40,000 people in Chelsea and Fulham

New analysis reveals that 40,000 local residents will benefit from the increase in the personal allowance made in last month’s Budget. The increase of £1,100, which is the largest ever announced, will make most basic-rate taxpayers £220 better off.

In April 2013, the personal allowance for income tax will rise to £9,205. Based on the data for current earners, a projected 40,032 people in Chelsea and Fulham will get a much needed boost every month. Of these, some 1,294 will be taken out of tax altogether.

The Budget changes mean that income tax will have been cut by up to £546 for basic-rate taxpayers since the Government came to power, and 2 million of the lowest earners will have been taken out of the tax system.

Commenting, Greg Hands M.P. said: “It’s fantastic news that 40,000 constituents will keep more of their earnings next year. In fact, thanks to this decision, 1,294 of them will no longer pay any tax at all.

“By next year, the Government will have lifted 3,000 people in Chelsea and Fulham out of income tax altogether.

“It demonstrates how committed we are to helping hard-working families.”