Increase in tax allowance

John_Pierpoint

mjm3346 wrote: »

They have said the personal allowance changes will be from 2011.
I cannot see any reason why they would be looking to increase the age-related allowances above the eventual £10k planned for everyone.

http://libdems.org.uk/latest_news_detail.aspx?title=Conservative_Liberal_Democrat_coalition_agreements&pPK=2697bcdc-7483-47a7-a517-7778979458ff

Because old people really do have a higher cost of living than young fit people?

Numpty_Monkey

dnpuckitt is a spammer:spam:
Reported to abuse

dealsearcher

John_Pierpoint wrote: »

Because old people really do have a higher cost of living than young fit people?

No, because old people have spent all their lives earning their money and should be able to hold onto most of it and not be expected to have taxed away from them.

gunmaker

John_Pierpoint wrote: »

Because old people really do have a higher cost of living than young fit people?

No. But they do have a smaller income, generally.

dzug1

dealsearcher wrote: »

No, because old people have spent all their lives earning their money and should be able to hold onto most of it and not be expected to have taxed away from them.

Even Fred the shred?

More seriously, I can't see the slightest logical reason for any special tax concessions for them on those grounds. No more or less than anyone else. Political reasons - yes - it looks good and if cleverly packaged needn't actually mean anything other than the feel good factor.

On other grounds - yes - higher cost of living and the like. If it's true.

TM1976

If the allowance goes to £10k across the board old people will be getting slightly more than they do now so they won't loose out if the age allowance doesn't continue.

They will be better off, just not as better off as those on the basic allowance.

zygurat789

TM1976 wrote: »

If the allowance goes to £10k across the board old people will be getting slightly more than they do now so they won't loose out if the age allowance doesn't continue.

They will be better off, just not as better off as those on the basic allowance.

If the elderly are not relatively better off then they are not better off.

The elderly need the extra because they need more maintenance as they are more worn out after years of looking after, nurturing and subsidising the young.

TM1976

zygurat789 wrote: »

If the elderly are not relatively better off then they are not better off.

Or course they are unless the increase in the personal allowance is matched by a corresponding jump in inflation.

Debt_Free_Chick

Yesterday's Coalition Programme here

Section 29 on page 30

"We will increase the personal allowance for income tax to help lower and middle income earners. We will announce in the first Budget a substantial increase in the personal allowance from April 2011, with the benefits focused on those with lower and middle incomes. This will be funded with the money that would have been used to pay for the increase in employee National Insurance thresholds proposed by the Conservative Party, as well as revenues from increases in Capital Gains Tax rates for non-business assets as described below."

zygurat789

TM1976 wrote: »

Or course they are unless the increase in the personal allowance is matched by a corresponding jump in inflation.

If you have tuppernce and everyone else has 1p you are rich.
If everyone has 3p you are not rich and inflation is almost inevitable