The Personal Allowance will rise in April 2021, ahead of a five-year freeze, following the coronavirus pandemic.
Various other tax allowances will be subject to a freeze, announced by Chancellor of the Exchequer Rishi Sunak during the 2021 Spring Budget.
Rachael Griffin, tax and financial planning expert at Quilter, said: “The various tax allowances and thresholds are great ways to incentivise people to save for their future, distribute their wealth and help establish a strong financial future.
“However, many of these have taken huge hits in recent years as subsequent governments look to claw back as much tax as possible.
“One could argue that these allowances and thresholds are never going to be as good again and will only get worse from here.