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Whalley and co Accounting Castle Bromwich Birmingham Accountants Bookkeeping


Whalley and co Accounting Castle Bromwich Birmingham Accountants Bookkeeping

Tax Information

Table of income tax relief's

  2008-09 2007-08 2006-07 2005-06
Personal allowance (age under 65)        
Age allowance (1) £6,035 £5,225 £5,035 £4,895
Total income limit £21,800 £20,900 £20,100 £19,500
Personal allowance age 65-74 £9,030 £7,550 £7,280 £7,090
Not beneficial if individual's total income exceeds £27,790 £25,550 £24,590 £23,890
Personal allowance age 75 and over £9,180 £7,690 £7,420 £7,220
Not beneficial if individual's total income exceeds £28,090 £25,830 £24,870 £24,150
Married couple's allowance (2) (4)        
Elder partner 65 before 6/4/2000        
Basic Allowance £2,540 £2,440 £2,350 £2,280
Age Allowance (3) (4)        
Total Income Limit £21,800 £20,900 £20,100 £19,500
Neither partner aged 75 or over £6,535 £6,285 £6,065 £5,905
Not beneficial if relevant partner (3)
under 65 and his total income exceeds
£29,790 £28,590 £27,530 £26,750
65-74 and his total income exceeds £35,780 £33,240 £32,020 £31,140
Either partner aged 75 and over £6,625 £6,365 £6,135 £5,975
Not beneficial if relevant partner (3)
under 65 and his total income exceeds
£29,970 £28,750 £27,670 £26,890
65-74 and his total income exceeds £35,960 £33,400 £32,160 £31,280
75 or over and his total income exceeds £36,260 £33,680 £32,440 £31,540
Children's Tax Credit (5) - - - -
Baby Rate (6) - - - -
Blind Person's Allowance (7) £1,800 £1,730 £1,660 £1,610
         
  • The higher rate allowances are available if the claimant's total income does not exceed the statutory income limit. Where the total income exceeds the statutory limit, the maximum allowance is reduced by one-half of the excess until it is reduced to the ordinary personal allowance.
  • The universal married couple's allowance was withdrawn for 2000-01 onwards but continues to be available to any married couple or, from 2005-06, civil partnership where at least one spouse or partner was born before 6 April 1935. The relief is given as a reduction in income tax liability restricted to the lower of 10% of the amount of the allowance of the claimant's total income tax liability.
  • The higher age allowances are available if the claimant's total income does not exceed the statutory income limit (subject to relief given as a reduction in tax liability as in note 2 above). Where the total income exceeds the statutory limit, the maximum allowance is reduced by one-half of the excess (less any reduction made in the personal age allowance as in note 1 above) but it cannot be reduced to less than the basic couple's allowance. For marriages entered into before 5 December 2005, married couple's allowance is given to the husband (subject to right of transfer to the wife), the amount of the allowance being determined by the level of the husband's income. For marriages and civil partnerships entered into on or after that date, the allowance is given to whichever of the two partners has the higher total income for the tax year in question, the amount of the allowance being determined by the level of that partner's income (subject to the right to transfer half or all of the basic allowance or excess allowances to the partner). Couples married before 5 December 2005 may make a joint election to be brought within the above rules for couples marrying on or after that date. The election must be made before the start of the first tax year for which is to have effect. It will continue to have effect for all subsequent tax years and is irrevocable.
  • The relief is given as a deduction in the tax liability. It is withdrawn at the rate of £2 for every £3 of income chargeable to tax at the higher rate and is restricted to 10% of the resulting figure. From 2003-04 onwards, the relief was replaced by the Child Tax Credit.
  • For 2002-03 the amount per claimant is higher for the year of birth.
  • The allowance is available for persons who are registered blind but not for persons registered partially-sighted.