(Bloomberg) -- Philip Hammond’s decision to raise the tax thresholds for lower and high-paid workers a year earlier than expected will cost the government 2.8 billion pounds ($3.6 billion) next year.
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The change in the coming fiscal year will cut taxes for 32 million people in the U.K., according to government estimates. A worker will be able to earn 12,500 pounds before paying income tax and earn 50,000 pounds before they pay the higher rate of tax, which currently stands at 40 percent.
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The decision will cost the U.K. 6.17 billion pounds in the first three years. The tax cuts kick in from April 2019.
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