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Taxing Income in the UK

Part of Tax 2010/2011 For Dummies Cheat Sheet (UK Edition)

Nearly everyone living in the UK is entitled to a personal tax allowance – the amount of income you can receive each year without having to pay income tax on it. You may be entitled to a higher personal allowance if you’re aged 65 or over.

Personal Allowances 2009–10 and 2010–11
Under 65 £6,475
65 to 74 £9,490
75 upwards £9,640
Age allowance limits* £22,900

*The higher personal allowance paid to those people aged 65 and over is reduced for income at and above this level by £1 for every £2 of income until the extra age allowance rate comes down to the personal allowance for under 65s.