Part 3 U.K. Personal reliefs

Chapter 2 U.K. Personal allowance and blind person's allowance

Personal allowances U.K.

35 Personal allowance for those aged under 65 U.K.

[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.]

Textual Amendments

F1 S. 35(1) renumbered (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(1)

F2 Word in s. 35(1) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(a)

F3 S. 35(2)-(4) inserted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(1)

36 Personal allowance for those aged 65 to 74 U.K.

(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 [F6 the 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.

Textual Amendments

F4 Word in s. 36(1) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(b)

F5 Word in s. 36(2) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(h)

F6 Words in s. 36(2)(b) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(2)

37 Personal allowance for those aged 75 and over U.K.

(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 [F9 the 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.

Textual Amendments

F7 Word in s. 37(1) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(c)

F8 Word in s. 37(2) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(h)

F9 Words in s. 37(2)(b) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(2)