New tax reforms come into effect today

The Government's new tax reforms come into effect today, here's a run-down of the main changes:

  • The largest rise in personal allowance, which means that no one pays any tax until they earn more than £9,440 per year.
  • The higher rate personal allowance threshold is to fall to £41,450.
  • The top rate of income tax will fall from 50p to 45p.

Read: Balls renews attack on government's tax reforms

Read: Top rate tax reduction a 'giveaway to the very top'

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Top income tax rate falls to 45%

A raft of government changes to tax reform come into effect from today, including a cut in the top rate of income tax from 50p to 45p.