Withdrawal of age related allowances

Is your birthday after 5 April 1948?

If the answer is yes you will not qualify for the higher value personal

allowances presently available to the over 65s and over 75s.

From 6 April 2013 Age Related Personal Allowances are being phased out. Here’s how the changes will work in practice:

 

1.            If your birthday is after 5 April 1948 you will not qualify for Age Related allowances.

2.            If your birthday is after 5 April 1938 but before 6 April 1948 you will continue to qualify for the Age Related Personal Allowance (65 to 74 age group) of £10,500 until this allowance equals, or is exceeded by, the Personal Allowance. For 2013-14 the basic Personal Allowance is due to rise to £9,205.

3.            If your birthday is before 6 April 1938 you will continue to qualify for the Age Related Personal Allowance (75 and over) of £10,660 until this allowance equals, or is exceeded by, the Personal Allowance. As mentioned in 2 above for 2013-14 the basic Personal Allowance is due to rise to £9,205.

 

There is no doubt that eventually all taxpayers over the age of 65 will be disadvantaged by these changes.

 

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