Student Loan ThresholdSaturday, December 17th, 2011
The Government’s intention is to increase the repayment threshold from £15,000 to £21,000 in April 2016, the date when most students who commence a three-year degree course in September 2012 will first become liable to make repayments. Although we have mentioned this before in our Newsletter, Regulations are now in force which:
- Increase the Student Loan repayment threshold annually between 2012 and 2016
- Increase this repayment threshold by the value of the Retail Prices Index (RPI) in the March ‘immediately before the commencement of the previous tax year’. This is for the tax years 2012/13, 2013/14, 2014/15 and 2015/16
- Set the repayment threshold at the value of the previous tax year from 06 April 2016 onwards
In short, the repayment threshold will rise by 5.3% in April 2012 from £15,000 to £15,795. This is the value of the RPI at March 2011 (the March before tax year 2011/12).