Increase in personal tax allowances.

thefenman

In the recent budget it was announced that the personal tax allowance was to be increased by £1,000.

I tried to find out if this increase would be applied across the board to include older tax payers without success, couldn't find any reference.

No wonder!

I finally wrote to my MP and he has replied, ". . . there is no intention at the moment to increase the allowance for over 65s and over 75s."

My MP is a Tory so it's his government that has made this decision.

I think a campaign is called for!

StevieJ

It looks like it will cancel the need in the future to take steps to maximise age allowance by using ISA's and Investment trusts for example.

zygurat789

Even with the lack of change of the £22,900 limit, Taxpayers claiming the higher age allowance will pay less tax on earnings greater than £26,930 and the band of earnings on which the effective rate of 30% has been reduced. This band had been increased dramatically as a result of the c**k up when the 10% rate was abolished.
So the rich (tory voting) pensioners are being repaid for their loyalty and the lower paid aged get nowt, it's the same the whole world over, it's the rich what gets the pleasure and the poor what gets the blame.

thefenman

I thought the whole budget lacked detail. The millionaire Cabinet members probably didn't even think far enough ahead to decide how far the tax allowance increase would go. It took my MP about 10 days to find the answer. I shall urge him to ask a question in the House and get this out into the open.

StevieJ

zygurat789 wrote: »

Even with the lack of change of the £22,900 limit, Taxpayers claiming the higher age allowance will pay less tax on earnings greater than £26,930 and the band of earnings on which the effective rate of 30% has been reduced. This band had been increased dramatically as a result of the c**k up when the 10% rate was abolished.
.

Not with you there, age allowance is £9490 and basic allowance is targetted at being £10k over the next few years, am I missing something here?

oldagetraveller

I watched the budget speech and he did specifically say, at the time, the £1000 increases were for taxpayers under the age of 65.

noh

oldagetraveller wrote: »

I watched the budget speech and he did specifically say, at the time, the £1000 increases were for taxpayers under the age of 65.

Yes page 32 section 1.93 of the budget report.


http://www.hm-treasury.gov.uk/d/junebudget_complete.pdf

noh

thefenman wrote: »

....................................................... I shall urge him to ask a question in the House and get this out into the open.

There is nothing to get out in the open it's all there in the budget report.

Why do you think those over 65 should have higher personal allowances than those under that age?

StevieJ

noh wrote: »

There is nothing to get out in the open it's all there in the budget report.

Why do you think those over 65 should have higher personal allowances than those under that age?

I agree I have really understood that one, but I am not sure they have been entirely forthcoming with what it happening with age allowance, although when you look at it in the cold light of day the end result seems inevitable.

zygurat789

StevieJ wrote: »

Not with you there, age allowance is £9490 and basic allowance is targetted at being £10k over the next few years, am I missing something here?

Yes, a few years.

noh

I expect that no decision has been taken over age allowances yet.
Most likely they will be done away with when the allowance for under 65s matches that of over 65s
That will also have the effect of simplifying the system which can only be a good thing.