OAPs' and the 10% Tax Allowance Changes

Bigfella

As an OAP, I looked forward to the tax refund that the Government promised for September. When it did not arrive, I queried the Tax Office. I was then told that this was correct because my age allowance had been put up from £7590 to £9030 for year 2008/09 to cover this change in taxation. On checking, I cannot find any statement in any Government pre- budget statement that relates to this. The Government did announce in 2007/08 that the 10% allowance would be removed and the 22% rate would be reduced to 20%. Having seriously misjudged the affects, they then announced the September payment and the return of the 10% rate for this year and possibly future years. Can anyone advise whether the Government did announce the age allowance increase was in fact given to counteract the 10% change. Likewise, if I am denied the reimposed 10% now, will I also lose out in future years?

RayWolfe

The removal of the 10% tax band and the increase in age allowance were features of last years budget and pre-budget statement, not the recent pre-budget statement.
It is correct that you didn't receive a further allowance when the September payment was made.
However, you will have received an increase in your Winter Fuel allowance and you will receive £60 extra in January.
The 10% has not been reintroduced so there is nothing to lose in future years.

Icequeen1

Bigfella wrote: »

As an OAP, I looked forward to the tax refund that the Government promised for September. When it did not arrive, I queried the Tax Office. I was then told that this was correct because my age allowance had been put up from £7590 to £9030 for year 2008/09 to cover this change in taxation. On checking, I cannot find any statement in any Government pre- budget statement that relates to this. The Government did announce in 2007/08 that the 10% allowance would be removed and the 22% rate would be reduced to 20%. Having seriously misjudged the affects, they then announced the September payment and the return of the 10% rate for this year and possibly future years. Can anyone advise whether the Government did announce the age allowance increase was in fact given to counteract the 10% change. Likewise, if I am denied the reimposed 10% now, will I also lose out in future years?

Have a look at this article http://www.litrg.org.uk/news/latest.cfm?id=537 and this article http://www.litrg.org.uk/news/latest.cfm?id=583 it might help explain it.

In essence the 10% band was not reintroduced, the Chancellor merely announced a rise in the under 65 Personal Allowance.

IQ

chriiiiiiiis

You have an allowance of 9030 anyway. I'd LOVE that.