High Earners Tax Changes - April 2010

The April 2009 Budget and subsequent December 2009 Pre Budget report introduced a number of tax changes that will impact on individuals with a high income. In brief these changes are:

• From 22 April 2009 restrictions on tax relief for employees with income of £150,000 (£130,000 from December 2009) or more whose pensions savings increase above their normal level.

• From April 2010 the personal allowance will be removed for employees earning £100,000 or more. Those earning £150,000 or more will also be subject to a new 50% top rate of income tax.

• From April 2011 those with gross income of £150,000 or more will only receive basic tax relief on the value of their pension savings, resulting in an annual tax charge for those with gross income of more than £180,000.

• Some new ways of defining income, with tests to assess the impact of tax relief and restrictions for individuals with pre tax income of £130,000 or more.

Further, detailed information can be found below:

Information for High Earners - Leaflet