Commentary

E1.911 Age-related personal allowances (2015/16 and prior tax years)

Personal and employment tax

E1.911 Age-related personal allowances (2015/16 and prior tax years)

E1.911 Age-related personal allowances (2015/16 and prior tax years)

Introduction

Following the introduction of independent taxation in 1990, every individual who meets the residence conditions and income conditions can claim a personal allowance. The allowance is deducted at Step 3 of the income tax computation in ITA 2007, s 23 (ie deducted from net income, see E1.101B).

For 2015/16 and prior years, enhanced personal allowances (in lieu of the basic personal allowance) were available to individuals meeting certain age requirements with income below certain limits. These age-related personal allowances are discussed below. Since 2015/16, all individuals, regardless of age, are entitled to the basic personal allowance, see E1.910. The 'basic' personal allowance is not a statutory term, but is a useful shorthand when referring to the personal allowance available to all individuals who meet the residence conditions.

For details of the amount of the age-related personal allowances for 2015/16 and earlier years, see T6.113 and T6.115.

Age-related personal allowances

Historically, there were two levels of the age-related personal allowance, with those in the older category receiving a greater enhanced allowance than those in the younger category1:

  1.  

    •     individuals born between 6 April 1938 and 5 April 1948 (for tax years prior to 2013/14, this was available to those aged between 65 and 74)

  2.  

    •     individuals born before 6 April 1938 (for tax years prior to 2013/14, this was available to those aged 75 and over)

For tax years prior to 2013/14, an individual was entitled to the appropriate allowance if he would have attained

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