Age-related allowance - Personal Allowance for people aged 65-74
Age-related tax allowance - tax free income
- Age-related allowance - Personal Allowance
Tax year
2010-11
2011-12
2012-13
Personal Allowance
Normal
£6,475
£7,475
£8,105
Age-related
Total
£9,490
£9,940
£10,500
Age-related
additional
£3,015
£2,465
£2,395
- Subject to income limit:
Income limit for age-related allowance:
2010-11
2011-12
2012-13
£22,900
£24,000
£25,400
- Allowances reduce when income is above the income limit for age-related allowances.
- By £1 for every £2 of income above the limit.
- Therefore no additional age-related allowance when total income is:
2010-11
2011-12
2012-13
Limit
£22,900
£24,000
£25,400
additional
+ £3,015 x 2 =
+ £2,465 x 2 =
+ £2,395 x 2 =
Total income
£28,930
£28,930
£30,190
- Granny tax news:
- In the 2012 Budget the Government froze age-related allowances and cancelled them for those turning 65 after 5 April 2013.
- This is not in tax law until the Finance Act 2012 receives Royal Assent.
- Called the Granny tax - commentators have said that the tax savings are too large for it to become part of budget U-turns.
- There is an open e-petition Closing: 22/03/2013 09:08.
- This will give rise to a debate in the House of Commons "Restoration of Age Related Tax Allowances" if it should accumulate 100,000 signatures by the closing date.
page last updated 12 November, 2016