Tuesday, 14 December 2010

Do state benefits affect the age-allowance?

Question
If someone over 65 is claiming Attendance Allowance, does this non-taxable income still get included in total income when assessing whether they breach the £22,900 limit for the claiming the full rate of Age Allowance for income tax?Answer
No, thankfully the Attendance Allowance doesn't affect age-related personal income tax allowances. Neither does the winter fuel payment.

There's a useful list showing the tax status of state benefits on the Directgov website, those benefits listed as tax-free do not count towards the age allowance.

Read this Q and A at http://www.candidmoney.com/questions/question338.aspx

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