Personal Tax – The personal allowance for 2013/14
For those aged under 65 the personal allowance will be increased from £8,105 to £9,440. This increase in the personal allowance is greater than the amount previously announced and is part of the plan of the Coalition Government to ultimately raise the allowance to £10,000.
The reduction in the personal allowance for those with ‘adjusted net income’ over £100,000 will continue. The reduction is £1 for every £2 of income above £100,000. So, for this year, there is no allowance when net adjusted income exceeds £116,210. Next year the allowance ceases when net adjusted income exceeds £118,880.
From 2013/14 the higher age related personal allowances will not be increased and their availability will be restricted to people who were born before 6 April 1948. Continue reading