Introduction
Bill Dodwell, Head of Tax Policy Group –
Deloitte
The Budget was full of lots of headline-grabbing measures
– but many of them will apply to few people.
The top rate of tax will rise to 50% for the 350,000 people with
income over £150,000 – from April 2010. At the same
time, those with income over £100,000 will lose all personal
allowances – which will cost about 700,000 people
something like £220 pm. Tax deductions for pension
contributions for those earning over £150,000 will be limited
to basic rate – from April 2011, with some rules to stop
early contributions. These measures are expected to raise £7
billion pa.
Business reliefs are modest. The £50,000 loss relief rule
will be extended for a second year – allowing loss-making
businesses to recover tax paid in the three previous years.
However, the refund for a company is only £10,000 –
so not a huge help. No further help for empty properties, though.
There's an increase in Capital allowances
