older people tax allowance

slopemaster

I recently did my 78-year-old mums tax for her for the first time. She has got 3 different pensions and some savings. Altogether, her income is just over the limit that stops her getting the higher personal allowance.
I was wondering what are her options to bring her income down just below this figure. Would it make sens to put 15 000 in National Savings tax free, and then also try to find an investment which is low-risk, but subject to CGT instead of income tax? Or does that not exist?

Grateful for any clues, thanks

Johnhowell

For your mother to only receive the Income Tax Personal Allowance for the under 65s, then her total income (including State Pension and interest) would have to be over £28830 for 2009/2010! Not bad for a pensioner.

When I looked into the Tax Coding Notices for my partner's mother - I found that the Tax Office "assumed" her income was over this limit to reduce the Allowance to below the lower level. We got 6 years worth of refund of over £2200! Obviously, her income is no where near yours!

Good luck,
John

RayWolfe

NS&I tax free savings and/or ISAs would both fit the bill as income from them do not have to be declared for the purposes of Age Related Tax Allowances.

mrkbrrws

Use an ISA if you haven't already.

Possibly investment bonds (http://www.find.co.uk/investments/funds&trusts/investment_bonds_guide).

You might want to consult a financial adviser.

dunstonh

NS&I certificates, ISAs and investment bonds plus a few others can all be used to reduce income that is included for income tax purposes.

slopemaster

Thanks all.
Yes, she got about 28 000 last year, my Dad said he would not leave her hard up. But he would not have let her pay more tax than necessary if he was still here - so I feel I have to sort something out!
A bit miffed that the tax 'advisor' who filled in her tax return until now, never mentioned this 'trap' and suggested further advice - just filled in the forms and collected a nice fee. If I can work this out, it must have been glaringly obvious to him, but was never mentioned.
Oh well, it was high time I took over doing it.
thanks for the advice.
That find.co thing looks useful, I didnt know about that site.