KPMG's tax predictions for the Budget

Allowances and thresholds Most personal allowances are anticipated to continue at the current levels. There could be modest increases of perhaps £500 in the higher allowances for those over 65. Effect of 50% rate At present, higher-rate tax payers who donate income to charities under Gift Aid receive relief at 40% if they have sufficient income taxable at 40%. In December 2009 the Government published research it had commissioned. This looked at a number of options, but the effect of any would be to deny full relief to those who pay tax at higher rates. While the Government has announce...