Personal allowance

Rebate Gateway: Some Britons still don't know that they could save hundreds each year in tax breaks

Retrieved on: 
Monday, September 7, 2020
Taxation in the United Kingdom, Personal allowance, Rebate, Allowance, Economy, Microeconomics, Market economics)

"There are many couples that think they are either not entitled, or it is a difficult process to claim," said Rebate Gateway, a tax consultancy in London.

Key Points: 
  • "There are many couples that think they are either not entitled, or it is a difficult process to claim," said Rebate Gateway, a tax consultancy in London.
  • Marriage Allowance enables an individual to transfer part of their Personal Allowance to their spouse/civil partner, with the intention of reducing the couple's overall liability to the tax man.
  • The Personal Allowance is currently 12,500 and the Marriage Allowance transfer is currently fixed at 1,250 which as a result allows for a reduction in the couple's tax liability by 250.
  • You are able to do this yourself online, through gov.uk , however for those that need help or advice, Rebate Gateway can be contacted on 0333 444 1054 or at rebategateway.org .

Rebate Gateway: Some Britons still don't know that they could save hundreds each year in tax breaks

Retrieved on: 
Monday, September 7, 2020
Taxation in the United Kingdom, Personal allowance, Rebate, Allowance, Economy, Microeconomics, Market economics)

"There are many couples that think they are either not entitled, or it is a difficult process to claim," said Rebate Gateway, a tax consultancy in London.

Key Points: 
  • "There are many couples that think they are either not entitled, or it is a difficult process to claim," said Rebate Gateway, a tax consultancy in London.
  • Marriage Allowance enables an individual to transfer part of their Personal Allowance to their spouse/civil partner, with the intention of reducing the couple's overall liability to the tax man.
  • The Personal Allowance is currently 12,500 and the Marriage Allowance transfer is currently fixed at 1,250 which as a result allows for a reduction in the couple's tax liability by 250.
  • You are able to do this yourself online, through gov.uk , however for those that need help or advice, Rebate Gateway can be contacted on 0333 444 1054 or at rebategateway.org .

Age-related personal allowance

Retrieved on: 
Wednesday, September 11, 2019
Taxation in the United Kingdom, Personal allowance, Allowance, George Osborne, Tax, Economy, Public finance of the United Kingdom, 10p tax rate, Child benefit

In May 2010, the new Coalition Government announced that as part of its first Budget it would introduce a substantial increase in the personal allowance, as the first step to setting the allowance at 10,000.

Key Points: 
  • In May 2010, the new Coalition Government announced that as part of its first Budget it would introduce a substantial increase in the personal allowance, as the first step to setting the allowance at 10,000.
  • In his 2012 Budget the Chancellor, George Osborne, announced that from April 2013 these two allowances would be phased out: each allowance would be frozen in cash terms, until they became aligned with the basic personal allowance.
  • [5] With this increase in the personal allowance, both age-related allowances were withdrawn so that since then taxpayers that were claiming these allowances are now eligible for the basic personal allowance.
  • For more details see, Income tax : increases in the personal allowance since 2010, Commons Briefing paper CBP6569, 15 November 2018.

Inheritance Tax

Retrieved on: 
Saturday, July 6, 2019
Economies, Countries, Inheritance Tax in the United Kingdom, Personal allowance, Inheritance tax, Tax, Income tax, Estate tax in the United States, Nil rate band, Taxation in the United Kingdom

Friday, July 5, 2019This paper gives a brief summary of the structure of inheritance tax before looking at the debates there have been about the tax in recent years.

Key Points: 
  • This paper gives a brief summary of the structure of inheritance tax before looking at the debates there have been about the tax in recent years.
  • Inheritance tax (IHT) is levied on the value of a persons estate at the time of their death.
  • [2] It is estimated that the tax was paid on 21,000 estates at death in 2017/18, representing under 4% of all deaths.
  • There are some gifts which one can make in the last seven years of ones life which do not attract tax.
  • By the middle years of the decade commentators were predicting that very many more families would have to make provision to pay for the tax in future, though even at this point, at the peak of the UK housing market, tax was paid on around 6% of all estates at death.
  • In its agreement published after the election, the Conservative-Liberal Democrat Coalition Government made a number of tax proposals including a substantial increase in the income tax personal allowance from April 2011.
  • The agreement went on to state that the new Government would further increase the personal allowance to 10,000, making real terms steps each year towards meeting this as a longer-term policy objective, and that it would prioritise this over other tax cuts, including cuts to Inheritance Tax.
  • [8] In its manifesto for the 2015 General Election the Conservative Party stated that in government, we will take the family home out of tax for all but the richest by increasing the effective Inheritance Tax threshold for married couples and civil partners to 1 million, with a new transferable main residence allowance of 175,000 per person.
  • The Budget report noted that, given this, the effective inheritance tax threshold will rise to 1m in 2020/21.
  • [19] Notes : [1] Tax rates and allowances for 2019/20 are set out in Annex A to HM Treasury, Overview of Tax Legislation and Rates, October 2018.

Tax, marriage & transferable allowances

Retrieved on: 
Tuesday, January 15, 2019
Taxation in the United Kingdom, Personal allowance, Tax, Economy, Income tax in the United States

Monday, January 14, 2019Since the introduction of independent taxation in 1990, all individuals have been assessed for tax as separate persons, entitled to their own personal tax allowance, to set against their liability to income tax. This note looks at the debate there has been about allowing partners to transfer their allowance to their spouse, so that the tax system might 'recognise' marriage.

Key Points: 
  • This note looks at the debate there has been about allowing partners to transfer their allowance to their spouse, so that the tax system might 'recognise' marriage.
  • Personal allowances are worth more to higher rate taxpayers, since they represent a fixed sum which is exempted from tax at an individual's highest marginal tax rate.
  • [4] After the election, the new Coalition Government did not make any specific proposals for transferable allowances, and the issue was not mentioned in its first Budget on 22 June 2010.

Income tax : increases in the personal allowance since 2010

Retrieved on: 
Friday, November 16, 2018
Taxation in the United Kingdom, Tax, Personal allowance, Income tax, Economy, Working Tax Credit

Thursday, November 15, 2018This note discusses the Coalition Government's policy over 2010-15 to increase the basic personal allowance each year, with the aim that the allowance should reach £10,000 by 2015, before looking at the current Government's approach to increasing both the personal allowance and the higher rate threshold - the point at which individuals start to pay the 40% top rate of tax.

Key Points: 


House of Commons Library

Income tax : increases in the personal allowance since 2010

  • In May 2010, the new Coalition Government announced that in its first Budget it would introduce a substantial increase in the personal tax allowance, a first step to its longer-term objective to raise the allowance to 10,000.
  • [1] All taxpayers are eligible for this tax-free allowance which represents the amount of income someone may earn before paying any income tax.
  • It is estimated that by 2014/15 these successive increases in the personal allowance resulted in 2.7 million people not having to pay tax on their income, at an annual cost of around 10.7 billion.