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Increased personal allowance from age 65

Everyone gets a 'personal allowance' that lets them have some tax-free income each year. The allowance may increase once you get to 65, depending on your income. But bear in mind that HM Revenue & Customs (HMRC) won't know your age unless you've told them or shown your date of birth on a tax return or claim form.

Tax year 2008-2009

 Tax year 2009-2010

If you become 65 or 75 during the tax year, you'll get the allowance for that age group.

Income limit for higher allowances

If your income's over £21,800 (£22,900 for the tax-year 2009-2010) your higher 'age-related' allowance reduces by half of the amount you have over that limit (a reduction of £1 for every £2 of income over the limit). But you'll never get less than the basic allowance of £6,035 (£6,475 for the tax-year 2009-2010).

So, if you're 66 and your income is £22,300 (£500 over the income limit) your allowance of £9,030 falls by £250 to £8,780.

Blind person's allowance

If you're registered blind, or are unable to perform any work for which eyesight is essential, you can claim blind person's allowance. Like your personal allowance, this is an amount of income you can get without paying tax. For 2008-2009 the allowance is £1,800 (£1,890 for tax year 2009-2010).

If you're married or in a civil partnership and you don't pay enough tax to use all the allowance, you can transfer any unused allowance to your husband, wife or civil partner if they pay tax.

• How to claim blind person's allowance Opens new window
• Contact your tax office Opens new window

Married couple's allowance (includes civil partnerships)

Married couple's allowance (MCA) is an amount that is taken off your tax bill – so you can only claim it if you pay tax.

If you were married before 5 December 2005

If you are married and living together and at least one spouse was born before 6 April 1935, the husband can claim married couple's allowance (MCA).

Your tax bill is reduced by 10 per cent of the MCA to which you're entitled. This amount depends on the husband's income and the age of the older spouse.

If one of you dies, or if you divorce or separate, you'll get MCA for the whole of that year.

If you married on or after 5 December 2005 or are in a civil partnership

If you are married or in a civil partnership and living together and at least one spouse or partner was born before 6 April 1935, the higher earner can claim married couple's allowance (MCA).

The claimants tax bill is reduced by 10 per cent of the MCA to which he or she is entitled.  This amount depends on the age of the older spouse or civil partner.

Period from which MCA is effective

In the year that you marry or form a civil partnership, your entitlement to MCA is reduced by one-twelfth for each complete tax month before the date of your marriage or civil partnership. For example, if you married or formed a civil partnership on 24 March 2009, in the tax year 2008-2009 you would only receive one-twelfth or one month's worth of the allowance.

If one of you dies, or the marriage or civil partnership dissolves or you separate, you'll get MCA for the whole of that year.

Married couple's allowance rates – 2008-2009 tax year

Married couple's allowance rates – 2009-2010 tax year

Because the MCA is applied at 10 per cent, your tax saving (based on a full year's eligibility) is at least £254 and up to £653.50 if you're under 75, and up to £662.50 if you're 75 or over. The actual amount depends on the claimant's income.

Effect of claimant's income on MCA

If the claimant’s income is over £21,800 (£22,900 for tax year 2009-2010) the MCA may reduce. The amount of the reduction is worked out as follows:

Example

A claimant who is 76 with income of £30,000 will be £8,200 over the limit.  Half of this – £4,100 – comes off his or her allowances, like this:

How to claim MCA

To claim MCA you simply telephone your Tax Office or write giving details of your marriage/civil partnership ceremony and spouse/civil partner (including date of birth). If you fill in a Self Assessment tax return you'll be asked to include details of your MCA claim.

• Understanding Self Assessment
• Completing a tax return

Transferring your MCA to your spouse or civil partner

If your tax bill isn't high enough to use up all of your MCA you can use form 575 after the end of the tax year to transfer any unused allowance to your spouse or civil partner. Ask your Tax Office to post one to you. (If you're making a claim for repayment of tax on a form R40 you can also request form 575 by ticking the appropriate box.) 

You can also decide to share the minimum MCA between you or, if you both agree, you can elect to transfer the whole of the minimum MCA to your spouse or civil partner. In this case you'll need to complete a form 18 'Transferring the married couple's allowance' before the start of the tax year. You can download the form from this page or it is available from your Tax Office.

• Download form 18 'Transferring the married couple's allowance' (PDF file, 365K) Opens new window
• Form R40 and help notes Opens new window
• Contact your tax office Opens new window
• Married Couple's Allowance (includes civil partnerships)

Maintenance payments relief

You can get an allowance to reduce your tax bill for maintenance payments you make to your ex spouse or former civil partner if:

You can reduce your tax bill by the lower of:

To claim maintenance payments relief contact your Tax Office and ask for form 41.

• Contact your tax office Opens new window

Gifts to charity

If you are a higher rate taxpayer, you can claim tax relief of 20 per cent on gifts you make to charity through Gift Aid. (The charity claims back the basic rate of tax you have paid.)

If you're a basic or higher rate taxpayer, you will automatically get tax relief at your highest income tax rate if you make gifts to charity direct from your wages or pension pay packet using a scheme called 'Payroll Giving'. Your employer or pension provider will need to offer the scheme for you to do this.

You can also get income tax relief for gifts of land, buildings, shares and securities made directly to a UK charity.

• Giving money to charity

Reclaiming overpaid tax

You might be able to reclaim tax that's been taken off your savings interest and any retirement annuity income you're receiving if:

More useful links

• HMRC guidance for pensioners (PDF document, 135K) Opens new window
• Find your Tax Office through an HMRC Enquiry Centre Opens new window
• More about civil partnerships