Income tax will rise to 50% for high earners to help the Treasury keep the budget deficit under control.
Tax for those earning £150,000 or more will rise to 45% this year, and today the Chancellor confirmed taxes will rise further. While no further rises will be seen for the next twelve months, in 2010/2011 those earning more than £100,000 a year will see income tax rise to 50%. The Chancellor also hit high earners with additional taxes on their pensions, by restricting higher rate tax relief for those earning more than £150,000 who make pension contributions. IFAonline
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes