Age related income limits

Helpme1982

Hello

Does anyone know what will happen to the age-related income limits on personal allowances after April 2013? This is for someone already receiving an age related allowance, who has reductions made to her allowance because she earns over £25,400. Once the age related allowances are done away with, will the income limits also end (apart from the standard £100,000 one)?

Any info greatly appreciated.

CLAPTON

I'm not sure what your mean

if age related allowances disappear then the income limits would have no meaning

Mikeyorks

Helpme1982 wrote: »

Once the age related allowances are done away with, will the income limits also end (apart from the standard £100,000 one)?

As Clapton says - the income limits will be irrelevant once we all converge onto the basic allowance.

But that won't be in 2013-14 - which is your question, I suspect? On the face of it (see 'Proposed revisions') everyone who is of the age will get £10500 or £10660 ...... in other words the basic age allowance but with no income restriction. I can't believe that will happen and suggest the legislation in 2013-14 will similarly freeze the allowance for those where it is restricted (in part or in total) until convergence happens?

http://www.hmrc.gov.uk/budget2012/tiin-2046.pdf

AirlieBird

Mikeyorks wrote: »

On the face of it (see 'Proposed revisions') everyone who is of the age will get £10500 or £10660 ...... in other words the basic age allowance but with no income restriction. I can't believe that will happen and suggest the legislation in 2013-14 will similarly freeze the allowance for those where it is restricted (in part or in total) until convergence happens?

The changes to legislation, which are in this year's Finance Bill, keep the income limit in place. There was no announcement on what the level of the income limit would be for 2013-14, but I agree I'd be surprised if it wasn't frozen. It is listed by HMRC as TBA.

Helpme1982

Hello, thanks for the replies - that was as I suspected. I'll check out the link, Mikeyorks.