Planning for High Earners

The 2009 Budget on 22 April was according to Alistair Darling "guided by our core value of fairness and opportunity". This may be so but it also marked a significant uptake in the amount of tax to be asked of high earners.

• 50% Income Tax to be applied to income over £150,000 pa from April 2010
• The Income Tax personal allowance reduced to zero for those with incomes over £112,950.
• Tax relief on pension contributions for those with incomes of £130,000pa or more will be restricted. In the meantime gross contributions receiving higher rate tax relief are to be restricted to contributions between £20,000 to £30,000 for 2010/11 depending on previous year contributions.

You have choices:

• Do nothing and pay up increased tax
• Retire, work less or move abroad
• Plan your affairs in a more tax efficient manner

Visit the Killik Chartered Financial Planners website to find out more about planning tax efficiently.