Income limit for couple age related allowances question
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novazombie
Posts: 327 Forumite
My father now 65 so received a personal allowance of £9180. my mom is 61 so still gets normal 6K allowance.
If their income is over the income limit of £21900 do they lose the extra allowance?
They will have rent coming in on top of the state pension. The rent is joint income 50% each, so really my question is, is that 21900 allowance for a couple or individually?
In 4 yrs when my mom is 65 also can they both have 21900 coming in (about 43K total), and still qualify for the allowance each?
If their income is over the income limit of £21900 do they lose the extra allowance?
They will have rent coming in on top of the state pension. The rent is joint income 50% each, so really my question is, is that 21900 allowance for a couple or individually?
In 4 yrs when my mom is 65 also can they both have 21900 coming in (about 43K total), and still qualify for the allowance each?
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Individual
Slightly out of date but this is the general idea:
http://www.guardian.co.uk/money/2008/jun/29/tax.savings
When there was a sporting chance of winning on the premium bonds they were popular with pensioners.0 -
The allowance is a personal allowance.
This tax year for people between 65 - 74.
The PA is £9,490
For earnings over £22,900 the the allowance is reduced down by £1.00 for every £2.00 earned over the limit.
eg if they earn 24,000 then their allowance is reduced by the difference between 24,000 and 22,900 divided by 2.
Earnings 24,000 minus
Income limit 22,900
= 1,100 divided by 2 = 550.
So the new PA would be 9490 - 550 = 8940 £
Once both are over the age of 65, then they both become eligible for age related allowances so yes they could have 45,800 (at todays allowances)
One last note to remember is that no matter how much they have coming in, their personal allowance can not be reduced to below that of a person under the age of 65, (This year its 6475)He's not an accountant - he's a charlatan0 -
The allowance is a personal allowance.
This tax year for people between 65 - 74.
The PA is £9,490
For earnings over £22,900 the the allowance is reduced down by £1.00 for every £2.00 earned over the limit.
eg if they earn 24,000 then their allowance is reduced by the difference between 24,000 and 22,900 divided by 2.
Earnings 24,000 minus
Income limit 22,900
= 1,100 divided by 2 = 550.
So the new PA would be 9490 - 550 = 8940 £
Once both are over the age of 65, then they both become eligible for age related allowances so yes they could have 45,800 (at todays allowances)
One last note to remember is that no matter how much they have coming in, their personal allowance can not be reduced to below that of a person under the age of 65, (This year its 6475)
Thanks for that very good info.
Earnings are profit and not turnover is that right? So the old couple could have a lot coming in but high expenses so still under the allowance?
If a house is owned jointly between my parents then the income is 50% each right?
Thanks again.0 -
my question is, is that 21900 allowance for a couple or individually?
It's individually.
Tax allowances are individual.
Pensions income from whatever source, is individual.
This has been the case since April 1990.
There is no such thing as a 'couple income'.[FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
Before I found wisdom, I became old.0 -
novazombie wrote: »Thanks for that very good info.
Earnings are profit and not turnover is that right? So the old couple could have a lot coming in but high expenses so still under the allowance?
If a house is owned jointly between my parents then the income is 50% each right?
Thanks again.
Earnings are definately not turnover, but based on income minus allowable expenses. (it doesn't always mean a profit.) - This gives you the taxable income, but it certainly covers things like insurance, repairs, legal fees, renewals, and if it is rented furnished then a further allowance for the depreciation of furniture/fittings etc) But I'm sure there are more things
This sort of thing is classed as "Income from Property" and if the taxable income is over £2,500 then they will be required to register for self assessment
As for it being split 50/50, again I'm not sure, it depends who owns the property and who is the landlord etc.He's not an accountant - he's a charlatan0 -
hi, im looking for some advice my grandparents left a large sum of money in probate in 1964, my mother and her siblings never knew anything about this untill i pulled up a probate record online, since the solicitor that delt with it at the time has stopped trading and is probably deceased himself i dont know where to start, to try and find out what happened to it, any advice would be great0
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We need a lot more information than this.
Where did you find the probate information?
Have you got yourself an official copy of the will?
Who were the beneficiaries?0
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