Your personal allowance is the amount you are allowed to earn tax free each year. Make sure you check that you are receiving the correct personal allowance, as it will depend on your age. The personal allowances for the 2011/12 tax year are:- 

* received in addition to the basic personal allowance.

The personal allowance for people earning over £100,000 will be gradually removed from 2010/11 onwards, resulting in a marginal rate of 60% on income between £100,000 and £113,000.  There is also a new 50% tax rate from 6 April 2010 on all income over £150,000.

An individual will be entitled to tax relief on personal contributions to a pension scheme in any tax year to the higher of £3,600 or 100% of ‘relevant UK earnings’ (broadly employment income or trading profits).  Employers will be entitled to tax relief made on behalf of their employees. 

People earning over £150,000 could face a restriction in the tax relief obtained from their pension contributions from April 2009. 

 Additional contributions of up to £1,200 per year can be made to the fund from other family & friends.  The income or gains arising from the fund are tax free.  The fund is normally accessible for the child at age 18.

The Government announced on 24 May 2010 that it intends to reduce, and then stop, Child Trust payments. For more information please follow this link - http://www.childtrustfund.gov.uk/templates/Page____1147.aspx

If you only qualify for Child Tax Credit the income limit is £16,040. If your income is more than this, the child element will be reduced. But your income can be up to £50,000 before the family element is reduced.

From 6^th October 2009 the cash ISA limit has increased to £10,200 for people aged 50 and over.  £5,100 of this allowance can be in a cash ISA.  This limit will apply to all investors from 6^th April 2010. 

Investment in shares of a qualifying EIS company of up to £500,000 for 2010/11 gives rise to tax relief at 20% of the amount invested. Shares held for at least 3 years will not give rise to a capital gain if sold after this initial qualifying period. You can also roll over a capital gain by investing in shares in an EIS qualifying company.

VCT invest in the shares of unquoted trading companies. Investment in a VCT of up to £200,000 for 2010/11 gives rise to tax relief at 30% of the amount invested so long as the shares are held for at least 5 years. Dividends from the VCT are exempt and capital gains on disposal of the shares in the VCT are also exempt.