In the Budget it was announced that, rather than increase in line with inflation each year, several personal tax allowances are to be frozen.

The below allowances will remain at the 2021/22 levels through until 2025/26:

Personal Allowance – £12,570

Basic Rate Band – £37,700 = Higher Rate Threshold £50,270

Additional Rate Threshold – £150,000

Capital Gains Tax Allowance – £12,300

Pensions Lifetime Allowance – £1,073,100

In effect, the real value of these allowances will be increasingly reduced each year through to 2025/26 as they are no longer annually increased with inflation.