Personal Allowances

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Return to read about income tax.

The allowances for 2008/09 and 2009/10 are as follows:

Personal Allowance
2008/2009, £6,035
2009/2010, £6,475

Personal Allowance for people aged 65-74
2008/2009, £9,030
2009/2010, £9,490
** See income limits below **

Personal Allowance for people aged 75+
2008/2009, £9,180
2009/2010, £9,640
** See income limits below **

Married Couples Allowance (born before 6/4/1935 but not over 75)
2008/2009, £6,535
2009/2010, not applicable

Married Couples Allowance aged 75 and over
2008/2009, £6,625
2009/2010, £6,965
** See income limits below **
** See the minimum married couples allowance below **

Blind Persons Allowance
2008/2009, £1,800
2009/2010, £1,890

Minimum Married Couples allowance

Married couples allowances are subject to a minimum amount as follows:
2008/2009, £2,540
2009/2010, £2,670

Income Limits

The income limit for age related allowances is as follows
2008/2009, £21,800
2009/2010, £22,900

The age related allowances are reduced by half of the earnings over the limit. Entitlement to all of the basic allowance is uneffected by this calculation.

Income Limits Example

So if you were aged 65 or over and earned £1000 over the income limit (£23,900) your personal allowance would be reduced by £500.

Return to read about income tax.


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