Remaining age related tax allowances - Makesworth Accountants

Remaining age related tax allowances

age related tax allowances

Remaining age related tax allowances

Most age related tax allowances have been phased out. However, the Married Couple’s Allowance (MCA) is available to elderly married couples or those in a civil partnership where at least one member of the couple were born before 6 April 1935. The allowance provides for tax relief by deducting 10% of the allowance from the amount of tax due on taxable income.

The MCA can reduce a tax bill to zero but cannot result in a refund of tax.

For the current tax year, the maximum amount of allowance is £8,695. This means that qualifying claimants can receive a maximum deduction of £869.50 from their Income Tax bill. The allowance will increase to £8,915 in 2019-20.

There is also one further age related allowance, known as the Maintenance Payments Relief (MPR). The MPR reduces a taxpayers’ Income Tax bill for maintenance payments made to an ex-spouse or civil partner. Again, this relief is only available where at least one of the ex-spouses or partners were born before 6 April 1935. There are certain conditions that must be met in order to claim this relief such as that the ex-partner can’t have re-married or formed a new civil partnership. The MPR works in the same way as the MCA with a maximum deduction of 10% of £3,360 i.e. £336 in the current tax year.

For more information on Age related tax allowances, Book a Free Consultation

See also  Autumn Budget statement

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