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
earning over £150,000 - from April 2010. At the same time,
those earning over £100,000 will lose all personal allowances
- which will cost about 700,000 people something like £220
per month. 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.
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 for expenditure in
the year to April 2010. However, the NPV is very small, so
won't encourage extra investment.
