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.
