So we have had the Budget. I am a little surprised that so few of the editorials that I have read have been quite as mild as they have. So let me outline a key point for those with incomes over £100,000. Remember that this is taxable income, not simply earned income – so includes taxable savings income and dividend income.

The personal allowance will reduce by £1 for every £2 over £100,000. The allowance has been frozen at £6,475. In other words with an income of £112,950 the personal allowance is lost entirely. So although the tax rate of 50% does not come into effect until 2011. The new tax year will see the following effective rates of tax.

Taxable Income

Effective Rate of income tax paid on income above £100,000

£112,950

60.00%

£120,000

52.95%

£130,000

48.63%

£140,000

46.67%

By constantly representing the figures, politicians often end up covering up the real facts of what they propose. The tax position for anyone with an income over £100,000 will mean more tax is paid, significantly more. This excludes other indirect tax increases – such as VAT and Stamp Duty.

We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting
[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]