Britain's high earners have been hit hard by this year's Budget. They will have to pay more tax next year and get less tax relief on their pension.
This is how they're affected:
From April 2010, the 350,000 who earn over £150,000 a year will have to pay a new top rate tax of 50% on income over that threshold. This is up from the initially-proposed 45%, which was not due to hit taxpayers until 2011.
From next April, those who earn over £100,000 annually will mostly lose their personal allowance (currently £6,475), which is the amount of their earnings they pay no tax on. For eveyone else, current income tax levels will remain the same.
From April 2011, the Government will gradually reduce the amount of tax relief those who earn over £150,000 a year get, so it eventually comes in line with the basic rate relief of 20%, rather than the higher rate 40%.
For every £100 you put in a pension pot, those who get the basic rate tax relief have to put in £80 and the rest is deposited by the Government. Higher rate payers have to put in £60, and the rest is state-funded.