Income Tax – Guidance on changes from April 2010Monday, May 18th, 2009
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.
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