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Personal tax changes

The Chancellor has not only brought forward proposals which were to take place in 2011, he has also made changes to his original announcements.

Restricted tax relief on pension contributions

Pension contributions made by an individual are usually paid net of basic rate tax. Where the individual is a higher rate taxpayer further relief is due which significantly reduces the net cost of the contribution.

Enhanced relief for trading losses

Under current rules businesses already have a number of mechanisms to relieve trading losses against other income including past trading profits.

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