Age Related Tax allowances finally being done away with

That was always the intention 12Michael, when it was frozen. I notice that Mr Osborne has said he will raise the Personal Allowance not to £10,500 as previously stated but to £10,600. I am sure it will actually go to £10,660 to equal the PA of those born before 6 April 1938. Then both working age tax allowances and state pension age tax allowances be the same and all rise together.

I could never see any reason for higher (a lot higher) tax allowance for those of state pension age and I assume this will save quite a lot in admin costs.

My income is well below £10600. I expect they'll start charging me tax and removing my meagre benefits in order to keep the rich in the manner to which they are accustomed.

It is only the age-related part of the allowance that is reduced if your pension is above a certain level. Both DH and I have that happen to us. It strikes me as a fair and reasonable thing to do.

Ana - the differential in extra tax allowance for the over 65s was to help the poorer pensioners so anyone who was a high rate tax payer (over 26k?) did not get the extra allowance - which was probably right - I wished I had been a higher rate tax payer
the equalisation of tax allowances now happening applies to everyone - under or over 65, higher rate tax payer or not
as one of the 'poorer' pensioners - the extra tax allowance would have been a big help but 'we are all in this together'

Brenda, I was under the impression that everyone gets the same personal tax allowance (depending on their age). If your DH's pension is above a certain level his tax code should go up so he pays more tax, that's all.

I have that problem also Brenda- I think it so unfair.

I hope they do away with another tax cost now. My DH has his allowance reduced because his pension is above a certain level. When everyone's tax allowance goes up to £10600 I hope his does also.

That's my DH then - looks like I can look forward to an ear bending later today then.