Avoiding the 50% rate

 Private banks and wealth managers are advising high earners to act now to protect their income before April, when a new top rate income tax is introduced.

 People earning over £150,000 will be subject to income tax of 50 per cent from April 6, 2010 while the upper rate for dividends will move from 32.5 per cent to 42.5 per cent. As a result, many are taking steps to bring forward earnings to this tax year, or plan their finances so as to minimise the impact.

 For more information, contact your local partner

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