Find out how the budget changes will affect income tax, inheritance tax, pensions, child tax credit and working tax creditIncome tax changesPersonal allowances and income tax thresholds will move up, as announced in the 2011 budget:• Personal allowance (amount you can earn tax free this year), up £630 to £8,105 for under-65s• Personal allowance for 65 to 74-year-olds, up £560 to £10,500• Personal allowance for over 75-year-olds, up £570 to £10,660• Married couple's allowance for over 75s, up £410 to £7,705• The limit on how much workers are taxed at the basic-rate of 20% has been reduced so that the amount you need to earn to become a high-rate taxpayer stays the same• The basic rate limit falls by £630 to £34,370, meaning a worker aged under 65 will earn £42,475 before paying tax at 40%• Any earnings above £150,000 will be taxed 50% this year – the 45% rate starts in April 2013Inheritance tax changesThere will be a new rate of inheritance tax for estates that leave a large legacy to charity:• Inheritance tax will be charged at 40% on estates over £325,000 where no legacy is made• Inheritance tax will be charged at 36% on estates over £325,000 where at least 10% is left to charityBenefitsA number of benefits, including the state pension and jobseeker's allowance (JSA), rise in line with inflation, as measured by the consumer prices index at September 2011 - 5.