Age 65 - does increased allowance backdate to April 6th?

mania112

If someone turns 65 during the tax year, will the new increased personal allowance backdate to the start of the tax year (being age 64 at that time) or does it start from the birthday?

anamenottaken

mania112 wrote: »

If someone turns 65 during the tax year, will the new increased personal allowance backdate to the start of the tax year (being age 64 at that time) or does it start from the birthday?

It operates for the first time in the year after they reach 65 (unless their birthday is 6 April, the start of the year). It doesn't operate for part-years so not from their birthday.

My birthday is within a fortnight of the start of the year - so my father missed out on any tax advantage in the year I was born (there was tax adjustment at that time but no child allowance for a first child, which I was).

zygurat789

anamenottaken wrote: »

It operates for the first time in the year after they reach 65 (unless their birthday is 6 April, the start of the year). It doesn't operate for part-years so not from their birthday.

My birthday is within a fortnight of the start of the year - so my father missed out on any tax advantage in the year I was born (there was tax adjustment at that time but no child allowance for a first child, which I was).

Bad news, I'm afraid. If you are referring to 6 April 2013 or 2014 then there is no increased age allowance . Thanks to all those young tories who thought it wasn't fair.
If you already have it, ie born before 5 Aptil 1948, then you keep it but it will wither on the vine and, ultimately, be overtaken by the personal allowance.

mania112

anamenottaken wrote: »

It operates for the first time in the year after they reach 65 (unless their birthday is 6 April, the start of the year). It doesn't operate for part-years so not from their birthday.

My birthday is within a fortnight of the start of the year - so my father missed out on any tax advantage in the year I was born (there was tax adjustment at that time but no child allowance for a first child, which I was).

I don't follow. Do you know this for sure? Because it seems you are likening it to another tax break?

The guides i've read don't mention it starting in the tax year AFTER a 65th birthday.

mania112

zygurat789 wrote: »

Bad news, I'm afraid. If you are referring to 6 April 2013 or 2014 then there is no increased age allowance . Thanks to all those young tories who thought it wasn't fair.
If you already have it, ie born before 5 Aptil 1948, then you keep it but it will wither on the vine and, ultimately, be overtaken by the personal allowance.

I know it's being phased out.

I am a young Tory.

00ec25

why not read this guide - fairly self explanatory
http://www.entitledto.co.uk/help/agerelatedtaxallowance.aspx

and although the page is now officially archived it still refers to the P161 and background if you prefer to see it on something HMRC branded
http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/pensioners/reducing-allowances.htm

zygurat789

mania112 wrote: »

I know it's being phased out.

I am a young Tory.

What you are not aware of then is that it is only being phased out for those born before 4 April 1948; no one born after 5 April 1948 will ever benefit from age allowance.
That's what I meant about young tories. This must rank as one of the meanest bits of legislation from a tax avoiding millionaire.

mania112

zygurat789 wrote: »

What you are not aware of then is that it is only being phased out for those born before 4 April 1948; no one born after 5 April 1948 will ever benefit from age allowance.
That's what I meant about young tories. This must rank as one of the meanest bits of legislation from a tax avoiding millionaire.

Yes I am aware (my original question is for a previous year - 'should this have happened?').

Why do you consider it 'one of the meanest bits of legislation'?

mania112

00ec25 wrote: »

why not read this guide - fairly self explanatory
http://www.entitledto.co.uk/help/agerelatedtaxallowance.aspx

and although the page is now officially archived it still refers to the P161 and background if you prefer to see it on something HMRC branded
http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/pensioners/reducing-allowances.htm

The tax allowance increases in the tax year of your 65th and 75th birthday. If you become 65 or 75 during the tax year (for example, the 2012/13 tax year runs from 6 April 2012 to 5 April 2013) you are entitled to the allowance for that age group.

So when you turn 65 - that whole tax year is increased to the higher allowance (before the rules change).

Contrary to the first reply, but that's also what I thought.

purdyoaten

mania112 wrote: »

So when you turn 65 - that whole tax year is increased to the higher allowance (before the rules change).

Contrary to the first reply, but that's also what I thought.

Indeed contrary - the first reply was just plain wrong

zygurat789

The age 65 now has no relevance and is not used by HMRC. The current method of expressing this, and it is clearer, is those born before 5 April 1948. If you wre born after that date you will not get Age Allowance.