ARTICLE · 22 APRIL 2009

Budget 2009 - Immediate Reactions

Deloitte

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Headline news from this Budget is the tax rises for higher earners from April 2010.

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Deloitte Tax Group

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Comment by Sally Grimwood, Tax Director, Deloitte

Headline news from this Budget is the tax rises for higher earners from April 2010. From that date:

The tax rate for those earning more than £150,000 will be 50% (not 45% from 2011, as announced in the PBR).
The personal allowance will be withdrawn from those earning more than £100,000 (not halved and then withdrawn from 2011, as announced in the PBR). That represents a cost of £220 per month for those affected.

It's hard to see ways to shelter income from the 50% tax rate as there are also restrictions on pension contributions from April 2011 for those earning more than £150,000 - see the section on individuals below for more information.

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