E1.914 Age-related personal allowances (2015/16 and prior tax years)—examples
These examples illustrate points made in E1.911.
Example 1—interaction between age-related personal allowances and foreign tax relief
Thomas, a single man aged 78 in 2013/14, has a UK pension for that year of £15,000 and overseas property income of £9,000 net of overseas tax of £3,000.
In 2013/14 the age-related personal allowance was £10,660, the basic personal allowance was £9,440, the income limit was £26,100, the basic rate of tax was 20% and the basic rate band was £32,010.
His UK tax liability for 2013/14, before double taxation relief, is:
|Overseas property income (£9,000 + £3,000)||12,000|
|Deduct: personal allowance (born before 6 April 1938)||10,660|
|Less: (£27,000 – £26,100) ×|
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