Finance Act 2009 – Bill receives Royal AssentWednesday, August 5th, 2009
The Finance Bill gained Royal Assent on 21 July 2009 and was published in full shortly afterwards with full supporting explanatory notes.
Sections and schedules on the Act provide the statutory basis for most of the payroll-related changes included in Budget 2009, all of which have been explained in various newsletters since the April Budget.
- additional increases to the personal allowance and basic rate limit for 2009/10
- loss of the personal allowance when earnings exceed £100,000 (2010/11)
- no automatic increase in the personal allowance for 2010/11
- new 50% tax band on earnings above £150,000 (2010/11)
- the £80,000 price cap for company cars to be abolished (2011/12)
- new lower CO2 threshold of 125 g/km (2011/12)
- appropriate percentage for electric cars changed to 9% instead of a discount
- list price of an equivalent manual car used when calculating the car benefit charge for disabled employees (2009/10)
- tax exemption for health screening and medical check-ups, even if not generally available (2009/10)
- tax relief on pension contributions restricted when earnings exceed £150,000 (2011/12)
- new 20% “special annual allowance charge” where earnings exceed £150,000 and pension contributions exceed £20,000 (2009/10)
- new penalties for failure to make statutory returns (no implementation date)
- new penalties for failure to pay tax (no implementation date).
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