Budget 2009 Tax Changes: "High Earners"

Changes to income tax from April 2010

• Personal allowance of £1 lost for every £2 of taxable income over £100k - 60% marginal rate of tax
• £6,475 personal allowance lost at £112,590 income
• Over £112,950 income - no personal allowance
• Taxable income £150k - 50% higher rate tax from April 2010

Changes to tax relief on Pensions

• Earning over £150k - reducing higher rate tax relief from April 2011
• Earning £150k - £180k - sliding scale from 40% to 20%
• Earning over £180k - pension tax relief limited to 20%
• Anti avoidance rules - e.g. salary sacrifice/funding restriction 09/10 tax year.