Income Tax – Guidance on changes from April 2010

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As announced in Budget 2009, from 6 April 2010,

• the personal allowance will be reduced by £1 for each £2 that the taxpayer’s “adjusted net income” exceeds £100,000, and
• a new 50% tax rate will be applied to taxable income exceeding £150,000.

HMRC has published a series of worked examples to illustrate how these changes will work. The five examples, elaborated somewhat in the Table below, use the 2009/10 personal allowance (£6,475) and the 2009/10 basic rate limit “£37,400” as the correct values for 2010/11 will not be known until the end of 2009.

Further information:
Additional Rate of Income Tax and Income Related Reduction of the Personal Allowance from 2010-11

This entry was posted on Monday, May 18th, 2009 at 05:00 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.