From 6 April 2010, the trust rates of income tax will be 42.5% for dividend income and 50% for other income. The new rates are 5% higher, and take effect a year earlier, than those announced in the 2008 Pre-Budget Report.

For individuals with taxable income over £150,000, new top rates of income tax will apply from 6 April 2010. The dividend additional rate will be 42.5% and the additional rate for other income will be 50%. Also, from 2010-11 the basic personal allowance for income tax will be reduced, for individuals with adjusted net income over £100,000, by £1 for every £2 over the income limit.

Restrictions on higher-rate tax relief on contributions to registered pension schemes will apply from April 2011 to people earning more than £150,000 a year. For those earning over £180,000, only basic rate relief will be available. Anti-forestalling measures, effective now, will be included in the Finance Bill 2009 to discourage those affected from making abnormal pension contributions in the run-up to April 2011.

The Chancellor announced an extension of the agricultural property and woodlands reliefs from inheritance tax to cover agricultural land and woodlands in the European Economic Area, with effect from 22 April 2009. Property in these categories will also qualify for capital gains tax hold-over relief for gifts of business assets.

The government is giving UK residents a final opportunity to make voluntary disclosures of unpaid tax on offshore accounts. HMRC is hoping to get permission to issue notices ordering banks to provide information about offshore account holders.

Legal update, 2009 Budget: key tax announcements.