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

Please contact us about your personal tax allowances, additional age-related tax allowance and for tax advice