The rate bands have been widened and some of the personal allowances have increased.
Income tax rates (5.0)
► The basic rate ceiling has increased to £37,400.
► The basic rate is 20 per cent from 2008-09.
► The 10 per cent starting rate for savings income now applies to any that you have within your top slice of income but below £2,440.
► A new 50 per cent additional rate applies to taxable income over £150,000 from 2010-11.
Allowances and reliefs
► Allowances such as personal allowance and age allowance have been increased (3.3).
► For 2010-11 and subsequently, personal allowance for those with taxable �adjusted� net income over £100,000 will be reduced by £1 for every £2 of the excess, down to nil.
► The pensions relief annual earnings cap goes up to £245,000 under the new system (14.3.1 & 14.6.2).
► Child tax credit (3.4.4) increases for 2009-10. Working Tax Credit (WTC) increases for 2009-10 (3.4.4).
► Child benefit (3.2.2) increases.
Transitional gift aid relief for charities
For 2008-09, 2009-10 and 2010-11 only, charities are enabled to reclaim tax on gift aid donations corresponding to the previous 22 per cent basic rate instead of the current 20 per cent (15.2.1).
From 2010-11, the tax saved by husbands and wives making their shares of income more equal, will be increased for the wealthy. Also, there is some scope for bringing income into 2009-10, from later years, subject to the rules.