• The £600 increase in the Income Tax personal allowance announced in May 2008 will become permanent with a further increase of £130. This means that basic rate taxpayers will pay £145 less tax a year in 2009-10 The personal tax allowance increases to £6,475, and the basic rate tax limit to £37,400 from April 2009.
• Employee, employer and self-employed rates of National Insurance Contributions will increase by 0.5 per cent from April 2011
• The Income Tax personal allowance will be restricted to half its value for those with incomes over £100,000 from April 2010
• A new, higher rate of Income Tax of 45 per cent will be introduced for incomes above £150,000
• As from April 2010, those on incomes of between £100,000 and £140,000 will see their personal allowances reduced by half. For those earning more than £140,000, the allowance will be dropped.
for more information with regards to the recent tax changes, and pre-budget reports, please click here