State pension and tax

mouse_

I collect my state pension in November 2011 aged 60 and 10 months due to the sliding scale bringing women's state pension age into line with men's. In January 2013 I collect a small LGPS pension. This will take my earnings to £9000 approx pa. I noticed on the income tax allowances (for this year) that people under 65 get an allowance of £6,475 and people over 65 get £9.490. This means that when I get my small occupational pension I will be paying tax on it until I am 65 when I will fall back inside the limit. Surely for women caught in the sliding scale for state pension should still qualify for a sliding scale on the tax allowance and the allowance should read "state pension age -74" rather than age 65-74. This seems a bit of an unfair black hole for women in this narrow age group. Does anyone know if there are any changes in the pipe line?

Thanks

CLAPTON

the tax allowance for people below 65 is 7475 for 2011-12 tax year

the increased allowance has alway been available only at 65 years so I don't understand your point about women caught in the sliding scale... you have to wait less than women that got their pension at 60 so you should be grateful

antrobus

This year 2011-2012 the personal allowance for IT is £7,475 and the over 65 allowance is £9,490.

As far as I'm aware there are no proposed changes of the kind that you suggest.

dzug1

You won't have quite as long to wait as you may think - you get the higher tax allowance from the start of the tax year in which you are 65. So 64 and 3/4 months for you

And you can defer your state pension if you wish/can afford to live without it. You are not taxed on what you don't get

AirlieBird

mouse_ wrote: »

Does anyone know if there are any changes in the pipe line?

There isn't; that would be sex discrimination and against EU law. Anyway, the way this Government is going it is looking to wipe out the age related personal allowance.

Jennifer_Jane

AirlieBird wrote: »

There isn't; that would be sex discrimination and against EU law. Anyway, the way this Government is going it is looking to wipe out the age related personal allowance.

Hi AirlieBird, do you have any reason for suggesting this? I hadn't heard anything about this, so grateful for any info you have.

AirlieBird

Only that they've increased the personal allowance substantially since they came to power and will keep on increasing it substantially to meet their Coalition agreement, yet they've only increase the age related allowances by the usual indexation and have shown no indication that they plan to do otherwise. If they keep on doing this then sooner or later the two will be the same.

Niggles

Sorry to butt in here but as you are talking about age related allowances and their reduced increase compared to the base PA I thought I should point out that I thought the latest PA for 65 to 74 was 9940 not 9490.

Jennifer_Jane

Niggles wrote: »

Sorry to butt in here but as you are talking about age related allowances and their reduced increase compared to the base PA I thought I should point out that I thought the latest PA for 65 to 74 was 9940 not 9490.

Yes, that is what I get.