2010/2011 – Personal allowances will be reduced to nil for those with total incomes in excess of £100,000. The rate of reduction will be £1 for every £2 above the income limit. Based on present allowances and rates, personal allowances will be eliminated once total income is > £112,950. Income within £100,000 to £112,950 subject to an effective rate of 60%

2011/2012 – Restrictions on higher rate relief on pension contributions – where total income is in excess of £150,000 higher rate relief will be progressively withdrawn and eliminated when total income reaches £180,000 – relief will then only be available at 20%. Detailed “anti-forestalling” provisions are introduced with immediate effect.

2010/2011 – Discretionary and accumulation trusts will be subject to a trust rate of 50% and a dividend trust rate of 42.5%.

Capital Gains Tax – Rate maintained at 18% – annual CGT exemption for 2009/2010 is £10,100 (trusts £5,050).

Inheritance Tax – no changes to rates – 2009/2010 nil rate is £325,000.

Savings – 2010/2011 ISA limit increased from £7,200 to £10,200, of which £5,100 can be saved in cash. Available to savers aged 50 or over from 06/10/2009.

Capital Allowances – 2009/2010 temporary FYA of 40% re expenditure on main pool plant & machinery – applies over and above the annual investment allowance of £50,000 – one year only from 01/04/2009 (companies) and 06/04/2009 (businesses). N.B significant changes re motor vehicles as previously announced.

Trading Losses – Companies’ trading losses in accounting periods ended in period 24/11/2008 to 23/11/2010 can be carried back against total profits of the 3 preceding years (most recent years first). Subject to a cap of £50,000 for each loss making period. Unincorporated businesses with trading losses in period ended in 2008/2009 and 2009/2010 can carry back 3 years against profits of the same trade subject to similar cap. As previously there is no restriction on loss carry back to immediately preceding accounting period or tax year.

“Naming and shaming” of tax payers penalised for deliberate understatement of tax due where tax at risk > £25,000