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Aged personal allowance

This year, the personal tax allowance is £10,500 for the 65-74 year olds and £10,660 for those aged 75 or more.

There are two changes from 2013-14. First the allowance for those already over 65 will remain unchanged. Second, anyone who reached 65 on 6 April 2013 or later, (those born on 6 April 1948 or later), would not get the extra allowance at all.

They will have the same allowance as younger people.

Not all over 65s will lose out. Those with an income above £26,100 have the allowance phased out and when their income reaches £28,220 (£28,540 for the over 75s) they get the same allowance as younger people and will benefit from the rise in the allowance from its current level of £8,105 to £9,440 in 2013/14.