|
allowances
Tax 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 2004-2005 the personal allowances are: - For people under 65: £4,745
- 65-74: £6,830
- 75+: £6,950
The personal allowances for elderly people are reduced if their total income exceeds £18,900, and the amount of the reduction is £1 for every £2 of the excess. So someone aged 68 with total income of £19,100 would get a personal allowance of £6,830 less £200 = £6,630.Other allowances are: - Married Couple's Allowance: only available to couples where one person is 65 or over
- Blind Person's Allowance: £1,560
Click here for banking information and services.
Related Terms:
benefits in kind
gross income
tax free pay
Back to Banking Glossary
|
|