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