This years Budget included some major changes to the Income Tax system. These changes will affect property investors just like everyone else. However, with careful planning, property investors may be able to avoid some of the impact.

The change which grabbed the most media attention was the so-called granny tax - the proposal to phase out the higher age-related personal allowance currently given to those aged 65 or more.

But a much more significant proposal is the plan to levy an additional Income Tax charge on any couple with young children, whenever either or both of the couple have annual income in excess of £50,000.

The new tax charge will be equivalent to 1% of the Child Benefit claimed by the couple for every £100 by which the highest earners income for the same tax year exceeds £50,000. Once the highest earners income reaches £60,000, the whole of the couples Child Benefit will effectively have been withdrawn by means of the charge and the charge will have reached its maximum.