November 11th 2009 12:36 pm
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In the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This applies to all age groups.
However, for people over the age of 65, for the 2008-09 and 2009-10 tax years the tax free allowances will never be less than the basic Personal Allowance.
From the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
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