Personal Allowances – changes that may affect you

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Personal allowances

From the 6 April 2011 the personal allowances available to individuals aged under 65 is increased from £6475 to £7475 (£9940 for those aged between 65-74 and £10090 for those aged 75 or over)

Due to the reduction of the basic rate limit to £35000.00 the increased personal allowance will not benefit higher rate taxpayers.

For higher rate taxpayers with adjusted net income in excess of £100,000.00, the restriction of the personal allowances is still applicable. The restriction is a reduction of £1 for every £2 of taxable income that exceeds the £100,000.00 threshold. Once an individual’s net income exceeds £114950, no personal allowance will be available.