PART 2: TAX
ALLOWANCES - HISTORICAL NOTES April 2000
The Married Couple’s Allowance was withdrawn for couples aged under 65, and replaced by Children’s Tax Credit on 6th April 2001 (from April 2003 - Child Tax Credit) at which time it ceased to be an allowance. Pensioners previously receiving the Married Couple’s Allowance continue to do so whilst they qualify. Widow’s Bereavement Allowance, withdrawn on 6th April 2000, was retained for the second year of entitlement for those widowed during 1999/2000. 2004/2005 Married Couple’s (Civil Partnership) allowance applied to those under age 75 and born before 6th April 1935, and from 5th December 2005 Married Couple’s Allowance has been available to Civil Partners and any unused Blind Persons allowance can be transferred to a married or civil partner. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 2008/2009 The basic personal allowance was revised on the 7th September 2008 with retrospective effect to 6th April 2008. April 2010 The basic personal allowance is subject to total income limits of £100,000. Where an individual’s income is above £100,000 the allowance will be reduced by £1 for every £2 above the threshold. Income is established via SA returns and the adjustment made to tax codes. Earnings and savings income above £150,000 liable to tax at 50%, to be known as the additional rate. This was delivered through PAYE - new tax tables were provided. Second jobs were not taxed at 50% as code D1 was not re-introduced until April 2011 so arrears accrued. April 2013 Earnings and savings income above £150,000 liable to tax at 45%. Age-related-allowances only awarded to those with a date of birth before 5th April 1948. April 2015 The age-related allowance for those born between 6th April 1938 and 5th April 1948 has been superseded by the basic personal allowance of £10,600. The age-related allowance for those born before 6th April 1948 remains at £10,660 as it is not subject to inflationary rises. This too is likely to be superseded by any future increases in the personal allowance. No printing, copying or reproduction permitted. April 2016 The age-related allowance for those born before 6th April 1948 is now superseded by the standard personal allowance. The marriage allowance rises on 6th April 2016 to 10% of £11,000, £1,100. As a consequence of the personal allowance (PA) rising to £11,000 the loss of PA now occurs at £122,000, a rate of £1 of PA lost per £2 net taxable income over £100,000. April 2017 The personal allowance rises to £11,500 bringing with it the marriage allowance to £1,150. Personal allowance is now completely lost when income reaches £123,000. The blind person’s
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