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Keeping up with the implications of tax changes and Budget announcements can be complex and time-consuming.

City Capital Analysis can help to explore ways to reduce your tax costs.

We have a range of strategies to reduce the impact of the latest Budget which announced a higher income tax rate rise than anticipated as well as bringing it forward by one year.

Changes you should be aware of include:

· From April 2010 the top rate of income tax of 50% (42.5% on dividends) will be payable on income over £150,000 and will be one of the highest in the larger western economies.

· The gradual withdrawal of personal allowances for those with incomes of £100,000 or more, and the restriction of higher rate tax relief for pension contributions for those with incomes of more than £150,000 (from April 2011), will increase the tax burden on higher income earners giving a marginal rate of tax for some of 60%. The transitional provisions on pension relief have immediate effect, particularly for those who usually pay significant annual contributions, such as senior executives and partners in professional partnerships.

· For example, someone with earned income of £250,000 making a 20% pension contribution which is caught by the anti-forestalling rules, can expect to be at least £22,500 worse off in 2010/11 and this position will deteriorate in 2011/12 as the 0.5% rise in national insurance contributions and the restriction of pension contribution tax relief takes effect in full.

· The higher rates of income tax will also apply to trusts.

City Capital Analysis can provide expert advice on your remuneration strategy.