Part 3Personal reliefs

Chapter 2Personal allowance and blind person's allowance

Personal allowances

35Personal allowance for those aged under 65

F1(1)

An individual who makes a claim is entitled to a personal allowance of F2£7,895 for a tax year if the individual—

(a)

is under the age of 65 throughout the tax year, and

(b)

meets the requirements of section 56 (residence etc).

F3(2)

For an individual whose adjusted net income exceeds £100,000, the allowance under subsection (1) is reduced by one-half of the excess.

(3)

If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1.

(4)

For the meaning of “adjusted net income” see section 58.

36Personal allowance for those aged 65 to 74

(1)

An individual who makes a claim is entitled to a personal allowance of F4£10,500 for a tax year if the individual—

(a)

is 65 or over at some time in the tax year, but under 75 throughout the tax year, and

(b)

meets the requirements of section 56 (residence etc).

(2)

For an individual whose adjusted net income for the tax year exceeds F5£25,400, the allowance under subsection (1)—

(a)

is reduced by half the excess, but

(b)

is not reduced below F6the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year.

(3)

For the meaning of “adjusted net income” see section 58.

37Personal allowance for those aged 75 and over

(1)

An individual who makes a claim is entitled to a personal allowance of F7£10,660 for a tax year if the individual—

(a)

is 75 or over at some time in the tax year, and

(b)

meets the requirements of section 56 (residence etc).

(2)

For an individual whose adjusted net income for the tax year exceeds F8£25,400, the allowance under subsection (1)—

(a)

is reduced by half the excess, but

(b)

is not reduced below F9the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year.

(3)

For the meaning of “adjusted net income” see section 58.