The Independent Newspaper has reported that it expects the 2014 Budget is likely to result in even more people being "eligible" to pay the 40% tax rate, thanks to an anticipated below-inflation 1% rise in the Higher Rate Threshold. Continuing to maintain the Threshold, or to raise it only slightly, is projected to drag a further 400,000 taxpayers into the 40% net - a total of 1.1 million since 2010, according to the newspaper, reporting on research by the Institute for Fiscal Studies.
It also predicts that the Personal Allowance will be increased to £10,500.
However, it is also widely reported that the government is under pressure from its own benches to ease the tax burden for middle-income families.
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