Impact of the new higher rate tax:

The new 50% rate comes into force from April 2010 – taxpayers may therefore want to accelerate income into the current tax year to cap the tax rate at 40%. As a further consequence – the higher rate on income tax will make capital gains tax look more attractive and therefore taxpayers should be enquiring as to methods of generating capital rather than income. Likewise, the benefit of Gift Aid payments to higher rate tax payers becomes more interesting.

Changes to the tax benefit of pension contribution:

Pension contributions are being restricted and so taxpayers who are keen to use pension plans for financial planning should assess their needs now.

Tax deductions for buying equipment: If you are planning to buy capital assets for your business – then with the new enhanced rates of tax deductions available on this expenditure – advice should be sort on how to maximise the advantage.