ACCA paper F6 UK Basic Income Tax computation | Personal allowance & Personal age allowance | example 2

Calculate the age allowance in the following situations.

At the end of 2009/10:

·         Dennis will be 71 and has a net income of £23750

·         Nora will be 90 and has a net income of £25400

·         Peter will be 80 and has a net income of £30900

Solution

	Dennis	Nora	Peter
Age at the end of tax year:	71	90	80
	£	£	£
Personal age allowance Less: Restriction 50% × (23750-22900)                                50% × (25400-22900)                                50% × (30900-22900) Personal age allowance	9490 (425) 9065	9640 (1250) 8390	9640 (3165) 6475