Taxable Income question

mar<

My 82yr Old Mum currently gets a state pension, a private pension from my (late) Dad, attendance allowance and rental income.

She's in a home and is self funding.

Which / how much of the above income is taxable?

alanq

Rental income*, state pension and private pension are taxable. Tax will be due if Mum's total income exceeds her personal allowance. Personal allowance is £9,640 for someone over 75 for tax year 2010-2011. This will be reduced if income exceeds £100,000.

Attendance Allowance is tax-free.
http://www.direct.gov.uk/en/disabledpeople/financialsupport/dg_10012425

* Assuming that the Rent a Room scheme does not apply because Mum is not living in the property being rented.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

sloughflint

alanq wrote: »

Rental income*, state pension and private pension are taxable. Tax will be due if Mum's total income exceeds her personal allowance. Personal allowance is £9,640 for someone over 75 for tax year 2010-2011. This will be reduced if income exceeds £100,000.

Attendance Allowance is tax-free.
http://www.direct.gov.uk/en/disabledpeople/financialsupport/dg_10012425

* Assuming that the Rent a Room scheme does not apply because Mum is not living in the property being rented.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

Not £100 000, rather £22 900 for this current tax year.
http://www.hmrc.gov.uk/rates/it.htm

alanq

Thank-you for the correction. I thought that the figure seemed high! I was quoting the figure for a reduction to the basic personal allowance instead of the one that I had intended to quote for a reduction to the age related allowance.

"However, from the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000."
http://www.hmrc.gov.uk/rates/it.htm