Changes to the income tax higher rate band and personal allowance take effect from 7th September 2008. These changes are effectively backdated to the start of the 2008/9 tax year.
The 2008/9 personal allowance limit is £6,035 – an increase of £810 on the 2007/8 tax year.
To ensure that the higher rate taxpayers don’t benefit from this increase, the higher rate tax band (40%) will now start at £34,800 – just £200 more than the 2007/8 tax year.
Update : The personal allowance for 2009/10 will be £6,475 and the higher rate tax band (40%) for 2009/10 will be £37,400.