Whilst most of the media coverage post-Budget centred around the creation of a new 50% rate of income tax for individuals earning more than £150,000, far more people will be impacted by the proposed restriction of the personal allowance for individuals earning in excess of £100,000 which is also due to be introduced for 2010/11. Personal allowances will be phased out at the rate of £1 for each £2 of income in excess of £100,000.
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Biggest Budget talking point:60% tax?
May 13th, 2009Implications of the 2009 Budget
April 29th, 2009Please get in touch for full details of how the Budget may impact you, in the meantime please read our quick guide to the key points:
1. Higher rate tax relief on pensions
Whilst much has already been written on this topic, it will not impact upon the vast majority of individuals.
Does your total income exceed £150,000 pa? If not, there is no change for you.
If your total income does exceed £150,000 pa but your pension contributions amount to less than £20,000 pa, there is still no impact on you.
Only if your total income exceeds £150,000 pa and your pension contributions amount to more than £20,000 pa will new restrictions apply (see below).
