confused about new income tax rate

[needsomemoresleep]

is the 50% for the the whole income £150k or for the amount above £150k?? also what do they mean about personal allowances being reduced?

thanks!
cutnpaste below from directgov website!

Additional higher rate of Income Tax from 2010
Today's Budget also announced that from April 2010 a new rate of Income Tax of 50 per cent will apply to income over £150,000. Also, the Income Tax Personal Allowance will be reduced for those with incomes over £100,000, tapering down to zero.

These changes are to replace the proposed 45 per cent Income Tax rate and the two-stage taper of the personal allowance announced in last November's Pre-Budget Report.

It means that the first £150k of earnings will be taxed as usual, then, anything over £150k earned will be taxed at 50% or 51% whatever.

everybody pays no tax on the first five thousand or so, then 20% roughtly on the next money up to about £35k then 40% on the next money up to £150k then 50% on anything above £150k. (figures rounded for ease - and cause i can't remember exact figures).

so if you earned £170k you'd pay:
50% of £20k plus 40% of £115k plus 20% of £30k.
which is about something like £62k (i think)

But if you earn over £100K you gradually lose your personal allowance and over £150K you don't get any of it so you are taxed on the whole lot (not at 50%, that's just the bit over £150K).

I don't have a problem with the rich paying more tax but I think everyone should be able to have some money which is tax-free (about £6K I think it is) and if you are a sole working parent you should be able to transfer your personal allowance to your non-working spouse.

It means that if you have two parents each earning £75K they pay a lot less tax than one parent earning £151,000. I don't think that's fair.

The other problem is that whereas previously you could pay your bonus into your pension scheme without paying tax on it, now you have to pay at 20%.

I think we're going to be quite a bit worse off. Can't afford to go to Asia though so will just have to suck it up.