Tax rate changes for higher rate taxpayers
From 6 April 2010 there will be changes to the tax rates applying to higher rate taxpayers. An additional rate of 50% will apply to taxable income above £150,000. In addition, from 6 April 2010 there will be three rates of tax applying to dividends. To reflect the new top rate of tax, an additional dividend rate of 42.5% will be introduced for those with incomes of over £150,000.
Our view
This is the first time a tax rate has been increased for many years, and so has come as something of a shock. It will no doubt attract many headlines, although it will affect only the top 1% of taxpayers (around 350,000 individuals).
