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Home / Simons-Taxes /Personal and employment tax /Part E1 Income tax /Division E1.9 Personal reliefs /Personal allowance / E1.914 Age-related personal allowances (2015/16 and prior tax years)—examples
Commentary

E1.914 Age-related personal allowances (2015/16 and prior tax years)—examples

Personal and employment tax

Prior to 6 April 2016, enhanced personal allowances were available to individuals meeting certain conditions in relation to age and income. From 6 April 2016 onwards all individuals are subject to the same conditions in relation to the personal allowance and there is no enhanced allowance for those over a certain age, see E1.910.

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

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