In income tax, the “higher rate” is set at 40%, and you currently start paying that rate on earnings above £46,350. Raising that threshold to £50,000 would therefore provide a tax cut to those people earning the current £46,350 and above, because more of their salary will stay within the “basic rate” of tax (currently 20%).
So what’s happened so far? In the 2017 Budget the government announced an increase in the higher rate threshold from £45,000 to £46,350. This came into effect in April 2018. Since then, in the 2018 Autumn budget, it was announced that the threshold for the higher rate will rise to the promised £50,000 in April 2019 – a year earlier than the 2020 deadline the government had set for achieving this.
So although this is pretty much a done deal, we’re marking this policy as ‘in progress’ for now. When the increase to £50,000 takes effect in April 2019 we will mark this promise as ‘done’. Follow this policy for updates.