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Basic Rate Tax changes

The Chancellor Alistair Darling has announced an amendment to personal tax allowances by £600.

This means that anyone earning up to approximately £40,000 will save £120 in tax.

This measure has been introduced to assist particularly the lowest paid who were to suffer high tax bills for 2008/09 due to the scrapping of the 10% tax band.

The money will come through in September as £60 and £10 per month for the remainder of the tax year.

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