Do Over 75s Get An Extra Tax Allowance?

There are a few categories of taxpayer that get extra allowances and currently over 65s and over 75s are two of those. However, this may not last long!

Currently those aged over 75 get a personal tax allowance of £10,660 for the tax year 2012/13. This is £160 more than the over 65s and so does not really save them very much in tax. However, as the over 65s get £2,395 on top of that given to the general population, the over 75s still benefit from that.

Unfortunately the coalition government announced in the last budget that age related tax allowances would be scrapped and would remain static until they came in line with every body else. This means that the age 75 allowance will likely remain at £10,600 for a few years, until the general UK tax allowance rises to £10,000 for all and then inflation takes it up to the rate of £10,660.

There is a lot of discussion about doing away with the age related tax allowances with some people dubbing it the ‘granny tax’ – but the government maintains that the rise in the personal allowance gives everyone a good level of tax free income.

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