Chapter 4 Page 3 The extra age allowances are reduced by £1 for every £2 where total income is more than the age-related allowance threshold. Does it mean that for every 2 pounds earned above 26,100 there will be a deduction of 1 pound from the 10,500 allowance for say, a 65 year old (or from 10,660 for a 75 year old)? Also, these allowances are in additionto the basic allowance of 9440, I presume. Am I right?
I think it means that if your earnings are say 102,000, the the 2000 you earn above the 100,000 threshold reduced your allowance by 4,000. So for an individual the 9440 would reduce to 5,440. Not sure if it applies to the old age allowances you have quoted as the asterisk doesnt appear there.
I think it means that if your earnings are say 102,000, the the 2000 you earn above the 100,000 threshold reduced your allowance by 4,000. So for an individual the 9440 would reduce to 5,440. Not sure if it applies to the old age allowances you have quoted as the asterisk doesnt appear there. I think it is a reduction of 1 pound for every 2 pounds . So if I am earning 2,000 in excess of 100,000, my basic allowance wil reduce by 1,000 and not by 4,000. By the way, then to what does that "age related allowance threshold" para pertain to?
Ahh yes - got it upside down. 2000 over th limit would reduce the allowance by 1,000 (not 4,000) The limit appears to be some income limit above which you do not qualify for the higher age related allowances.
