Find out what's changed and whether you'll be better or worse off financially for the year ahead.
Here's a summary of the big changes to the tax rules and regulations that kicked in on 6th April, 2010; the start of the 2010/2011 tax year.
ISAs:
- The ISA limit has been increased to £10,200 for all savers.
- Up to £5,100 of this can be invested as cash.
Personal Allowances:
- The personal allowance (the amount you can earn before you're taxed) has been frozen at £6,475 instead of increasing with inflation.
- Individuals whose income totals more than £100,000 each year will have their personal allowance withdrawn at a rate of £1 for every £2 they earn above the £100,000 threshold.
Income Tax:
- In addition to the 20% basic rate and 40% higher rate tax bands already in place, an additional 50% tax band has been introduced for those who earn over £150,000.
- Those that pay tax at the 50% 'additional' rate will also have any dividends taxed at a higher rate of 42.5%.
Pensions:
- The full, basic state pension has increased by 2.5% to £97.65 a week (£156.15 for couples).
- All other top-up pensions have been frozen at last years rates.
- The minimum age at which you'll be able to claim a personal or company pension has been increased to 55.
- The number of years you need to work in order to claim a full basic state pension has been cut to 30 for both men (previously 44 years) and women (previously 39 years).
- The age at which a woman will be able to claim a state pension has started to rise so that it's brought in line with the male retirement age of 65 by 2020.
Statutory Maternity, Paternity & Adoption Pay:
- Statutory maternity, paternity and adoption pay been increased to £124.88 a week or 90% of your average weekly earnings (whichever is less) after the first 6 weeks.
