feature
Other Candid sites

Candid Financial Advice
Financial advice for a fraction of the usual cost.

Compare Fund Platforms
The UK's only fund platform comparison site for private investors.

Calculator over 80 Calculators!

Covering almost all your money needs - use them.

Property Price

Calculator Find out how much your property has changed in value based on average property price movments in your area.

Random Jargon

Whole of Life Life Cover

A type of life insurance that can run until you die, however old you might be. However, premiums tend to increase over time so it can become very expensive.

Ask Justin

Ask Justin

| Printable version | A A A |


Do gains affect my age allowance?

Tax | Capital Gains Tax Helpful? 11

Asked by talmangalis, submitted 08 March 2010.

Open Quote Is a Capital Gain classed as income for purposes of age allowance? And If I turn 65 half-way through the tax year, at what point do I qualify for the increased allowance i.e. at the beginning, end or pro-rata?End Quote

Answered by Justin on 09 March 2010

Good news on both fronts. Capital gains are not classed as income so they don’t affect your age-related income tax allowance. Plus the increased allowance applies for the whole tax year in which you celebrate your 65th birthday. So, for example, even if you turn 65 on 5 April 2010 you’ll enjoy the higher allowance for the whole tax year running from 6 April 2009 to 5 April 2010. It’s always worth checking with your tax office before you reach 65 to ensure they know your date of birth, so that the additional allowance is applied correctly.

There’s a change affecting the seriously wealthy from 6 April this year. If you earn above £100,000 then your personal income tax allowance will reduce by £1 for every £2 of income above the £100,000 limit. This means that for a few people above 65, not only would they lose their additional age-related allowance, but their personal allowance could be wiped out entirely. Mind you, I doubt those earning over £100,000 in retirement are overly worried!


Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

If you found this answer helpful, please add your vote by clicking here.


Readers' Comments (0) - To post a comment please register or login .