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 now £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.

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