Island Life Magazine Ltd December 2009/January 2010 | Page 107

LOCAL BUSINESS

life

Chancellor introduces
60% income tax rate
Moore Stephens (South) LLP
9 St John's Place
Newport
Isle of Wight
PO30 1LH
Photo: Peter Warren

You are probably aware that the top
rate of tax next year on incomes over
£150,000 will be 50%. Did you know
that incomes below this level can suffer a
marginal rate of tax at 60%?
Were you also aware that we no longer
have the three rates of income tax that
you probably know – i.e. 20%, 40% and
50% but, depending on your income
source and level, it is quite possible that
the extra £1,000 that you earn could
suffer tax of £200, £250, £361, £400,
£500 or £600 – frightening isn’t it?
These varying rates of income tax mean
that we must now focus even more on
the marginal rate of tax that will apply to
your income. Quite simply, how much tax
will you lose on the next £1,000 of your
income or profits?
Obviously you need to review your
personal tax position for 2010/2011 and
possibly 2011/2012 to see what can be

done to mitigate these high tax rat