Budget 2014 – Personal Allowances

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Personal allowances remain fixed for 2014/15 at £10,000, the much promised level included in the Coalition Agreement. However the Budget also announced that there will be a further above inflation increase to £10,500 for 2015/16 in line with the allowance currently available to taxpayers aged 65 to 74. Those aged 75 and over will continue to receive a personal allowance of £10,660. Do remember that if adjusted net income exceeds £100,000 the personal allowance is reduced by £1 for every £2 over £100,000, giving an effective rate of 60% on income between £100,000 and £120,000 for 2014/15.

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