From 6th April 2010 the following points maybe of concern to Higher Rate Taxpayers:-

  • No increase to the £6,475 personal allowance and the basic rate tax threshold of £37,400.
  • Up to 60% effective tax rate on adjusted net income between £100,000 and £112,950, as individuals at these levels of income will lose part or all of their personal allowance.
  • A special annual allowance tax charge on pension contributions/accrual in excess of £20,000 or in certain cases £30,000 for people with relevant income of at least £130,000 in the 2010/2011 tax year or in either of the previous 2 tax years.
  • 42½% tax rate on dividend income and 50% tax rate on other income over £150,000.
  • From 6th April 2010 an effective restriction to higher rate tax relief on pension contributions/accrual for individuals with gross income of at least £150,000, or pre-tax income of £130,000 where the addition of employer pension contributions takes their gross income up to £150,000.

The main things to consider in order to potentially reduce your income tax liability are listed below:-

  1. Review your level and method of pension contributions.
  2. Invest in non-income producing investments.
  3. Make gift aid donations.

 Stiles & Company Financial Services (Petersfield) Limited is a firm of Independent Financial Advisers dedicated to providing a highly professional service to our clients, spread predominately across Hampshire, Sussex & Surrey.


Case Study: Investment Management & Retirement Planning

When I first met Sheila she had numerous investments, savings and pension plans spread across a wide range of financial institutions. The portfolio was proving hard to keep track of ... READ MORE


Case Study: Options at Retirement

Alan approached me for advice regarding his pension fund, built up through Legal & General. Being independent, we could consider the full range of products available from the ... READ MORE


Latest Blog Articles

A road map for investing in uncertain times

Like everyone, we have been stunned by the events in Ukraine. These are difficult andRead more

“Noise” blocking – good for your portfolio

It’s easy to feel bombarded by the constant cycle of negative news headlines or ‘noise’,Read more