Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Taxing retirement

02 February 2010 / Rebecca Benneyworth
Issue: 4241 / Categories: Comment & Analysis
Computing the tax liabilities of older taxpayers can be a complex task, as REBECCA BENNEYWORTH demonstrates

The computation of tax liabilities for elderly taxpayers is complicated by a number of factors not least the abatement of the age allowance when income exceeds the limit.

The best way to understand the rules is to follow a number of computations and in this extract from Tolley’s Taxwise 2009-10 we look at some detailed computations for a variety of situations including a tax credit claim. Note that the effective rate of tax/tax credit withdrawal is 40% or more for all of the taxpayers except Mrs Partid after she is widowed.

The single man

Richard White is a single man aged 68 with pension income of £23 000 building society income of £2 600 (gross) and dividend income of £180 plus dividend tax credits of £20. He paid a gift aid payment of £800 (net) to his local church during the year. The income tax payable...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon