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Age Related Tax allowances finally being done away with

(9 Posts)
12Michael Thu 04-Dec-14 08:33:17

Looks like those who were born before 6th April 1948 will in the next few years find themselves loosing out as the age related tax allowance is slowly absorbed into the basic tax allowance from April 2015 its 10600 before tax removing one of the age related tax allowances.
Mick

Teetime Thu 04-Dec-14 09:45:18

That's my DH then - looks like I can look forward to an ear bending later today then.

Brendawymms Thu 04-Dec-14 10:07:26

I hope they do away with another tax cost now. My DH has his allowance reduced because his pension is above a certain level. When everyone's tax allowance goes up to £10600 I hope his does also.

Charleygirl Thu 04-Dec-14 10:09:21

I have that problem also Brenda- I think it so unfair.

Ana Thu 04-Dec-14 10:10:29

Brenda, I was under the impression that everyone gets the same personal tax allowance (depending on their age). If your DH's pension is above a certain level his tax code should go up so he pays more tax, that's all.

mollie65 Thu 04-Dec-14 10:48:44

Ana - the differential in extra tax allowance for the over 65s was to help the poorer pensioners so anyone who was a high rate tax payer (over 26k?) did not get the extra allowance - which was probably right - I wished I had been a higher rate tax payer hmm
the equalisation of tax allowances now happening applies to everyone - under or over 65, higher rate tax payer or not
as one of the 'poorer' pensioners - the extra tax allowance would have been a big help but 'we are all in this together'

FlicketyB Thu 04-Dec-14 19:20:29

It is only the age-related part of the allowance that is reduced if your pension is above a certain level. Both DH and I have that happen to us. It strikes me as a fair and reasonable thing to do.

apricot Thu 04-Dec-14 20:38:52

My income is well below £10600. I expect they'll start charging me tax and removing my meagre benefits in order to keep the rich in the manner to which they are accustomed.

Gracesgran Thu 04-Dec-14 23:36:55

That was always the intention 12Michael, when it was frozen. I notice that Mr Osborne has said he will raise the Personal Allowance not to £10,500 as previously stated but to £10,600. I am sure it will actually go to £10,660 to equal the PA of those born before 6 April 1938. Then both working age tax allowances and state pension age tax allowances be the same and all rise together.

I could never see any reason for higher (a lot higher) tax allowance for those of state pension age and I assume this will save quite a lot in admin costs.