Tax allowance and state pension.

slinga

When you start receiving state pension does your tax allowance increase??

tanith

Lots of information here...http://www.hmrc.gov.uk/incometax/personal-allow.htm

slinga

Thanks.
Just reading that I can't see that it specifically refers to persons receiving State Pension. Did I miss something because I thought the normal pa was below £6k but I read on that page:
Born after 5 April 1948 - £9,440


How have I mis read??

dtaylor84

The "normal" personal allowance is now £9,440. It has been increased substantially over the past few years to meet the Lib Dem's manifesto commitment to increase it to £10,000 by the end of this parliament.

The age-related personal allowance still exists for those born before 6th April 1948, but it has been frozen and will be removed once the standard personal allowance catches up.

Claiming the state pension has no effect on your personal allowance.

slinga

Thanks.

So is it £9440 whether you receive State Pension or not?

Oops just read your final sentence.

Thanks again.

CLAPTON

slinga wrote: »

Thanks.

So is it £9440 whether you receive State Pension or not?

Oops just read your final sentence.

Thanks again.

there is however still an age allowance

currently if you were born before 1948 you get a slightly higher tax allowance (10,500 or 10,660 (if before 1938)):
however this has been frozen so will disappear once the ordinary tax allowance reaches these levels.
It has nothing as such to do with actually receiving the state pension.