|
|
Tax allowances |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Tax allowancesTax allowances are concessions by the Inland Revenue which can be used to reduce a person's Taxable Income. The main allowance for UK taxpayers is the 'personal allowance'; which is an amount of income that is tax free. In the tax year 2003-2004 the personal allowances are:For people under 65: £4,61565-74: £6,61075+: £6,720The personal allowances for elderly people are reduced if their total income exceeds £18,300, and the amount of the reduction is £1 for every £2 of the excess. So someone aged 68 with total income of £18,700 would get a personal allowance of £6,610 less £200 = £6,410.Other allowances are:Married Couple's Allowance: only available to couples where one person is 65 or overBlind Person's Allowance: £1,510Similar MatchesAllowancesAllowancesTax allowances are concessions by the Inland Revenue which can be used to reduce a person's taxable income. The main allowance for UK taxpayers is the 'personal allowance', which is an amount of income that is tax free. In the tax year 2003-2004 the personal allowances are:For people under 65: £4,61565-74: £6,61075+: £6,720The personal allowances for elderly people are reduced if their total income exceeds £18,300, and the amount of the reduction is £1 for every £2 of the excess. So someone aged 68 with total income of £18,700 would get a personal allowance of £6,610 less £200 = £6,410.Other allowances are:Married Couple's Allowance: only available to couples where one person is 65 or overBlind Person's Allowance: £1,510 Income limit for age related allowancesIncome limit for age related allowancesPeople aged 65 to 74 are entitled to an additional personal tax allowance provided total earnings do not exceed a given amount. This allowance is further increased for people aged 75 and over.Also a married man, living with his wife where either person is over the age of 65, is entitled to an additional married couple's allowance provided his total earnings do not exceed that same given amount. In cases where total earnings exceed this figure, these allowances are reduced by £1 for every £2 of income earned above this amount. |
|
|
|