Budget batters anyone earning more than 150k
Alistair Darling is still unveiling his budget revelations, but the big news so far is that anyone earning more than 150k a year is in for a shock.
Although Darling emphasised that he intends to "retain [Britain's] position a world centre for finance," the following measures are likely to hit the City disproportionately -
- Anyone on an income above 150k (350,000 people) will see their marginal tax rate rise to 50% from April next year (instead of 2011 as originally planned).
- Anyone earning more than 100k will see their non-taxable allowance removed from next April.
- Tax avoidance schemes will be clamped down upon.
- Higher rate tax relief on pensions for anyone earning more than 150k will be removed.