For the tax year 2010/11 all tax allowances and thresholds will be the same as for 2009/2010. The much anticipated 50% tax rate will apply to income over £150,000 from 6 April 2010, as announced by Budget 2009.

For the tax year 2012/13, the higher rate threshold (the point at which someone starts to pay higher rate tax) will be frozen at the 2011-12 amount. The personal allowance will be increased and the basic rate limit will be reduced by the same amount.

Banking payroll tax
A one-off new bank payroll tax of 50% has been introduced on all discretionary and contractual bonuses (cash or otherwise) on any excess over £25,000 (one-off or in aggregate) awarded by banks, building societies and financial businesses to their employees between 9 December 2009 and 5 April 2010. This tax is payable by the employer by 31 August 2010 and cannot be deducted in the calculation of the banks' taxable profits. There is an exemption for contractual bonus entitlements where the employer has no discretion as to the amount of the bonus due to an existing contractual obligation as at 9 December 2009. Draft legislation has been published on the HMRC website including detailed anti-avoidance rules.