2015 BUDGET – UPDATE!! – PERSONAL ALLOWANCE & HIGHER TAX RATE It has been announced that the personal Tax Free Allowance will increase to £10,800 next year and increase again to £11,000 the following year, effecting an estimated 27 million people. George Osbourne has also confirmed that the threshold in which workers will be required to pay the higher Tax rate will increase to £43,300 by 2017-18