- This topic has 4 replies, 3 voices, and was last updated 10 years ago by
.
- Posts
I have a question in regards to the calculation of the personal age allowance when the pensioner has a higher income of £27,000 and is born after 06/04/1938
For example Peter DOB is 16/03/1934 and has net income of £32,300 and his personal age allowance would be £10,660
So I calculate the restriction as 50% x (32300 – 27000) = £2650
but the answer is (660) as I assume that £660 has been taken away from his allowance of £10,600 to leave him with the basic allowance of £10,000I can’t understand is why it is not 10,660 – 2650 = £8010
Many thanks
MadeleineI think you mean born “before” 6 April 1938 not after! Have you read the notes in section 3 of chapter 2 which deals with the personal age allowance? The notes clearly state that we do not reduce the PA below the standard PA of 10,000 unless ANI exceeds 100,000!!
Otherwise we would be treating elderly people more harshly than others!!!Well Biggles you will be pleased to hear that soon everyone will have the same personal allowance, though your current argument hardly seems valid if we only reduce “young” people’s PA when their ANI exceeds 100,000 but you think “old” people should start to lose their PA at about 28,000! Please do not become Chancellor of the Exchequer!! Cheers
- You must be logged in to reply to this topic.