Written question asked by Desmond Swayne (Conservative) on Monday, 14 March 2005, in the House of Commons. It was due for an answer on Thursday, 17 March 2005. It was answered by Stephen Timms (Labour) on Thursday, 17 March 2005 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what powers he has to provide tax relief to the over-65s on savings and earnings for those earning between £18,900 and £23,070.

Answer: Mr. Swayne: To ask the Chancellor of the Exchequer what powers he has to provide tax relief to the over-65s on savings and earnings for those earning between £18,900 and £23,070. [222364] Mr. Timms: Those over 65 are entitled to more generous personal allowances than those aged below 65, while those over 75 have a greater entitlement still. In 2004 the personal allowances for all those aged 65 and over were increased in line with earnings by a provision in the Finance Act. The Chancellor announced his intention at last December's PBR of introducing a similar increase to the personal allowance for all those aged 65 and over in this year's Finance Bill. This over-rides the automatic increase which is made in line with prices for all personal allowances. The higher allowances for those aged 65 and over are reduced where their income is above a certain level. This level, £18,900 for 2004-05, is also increased automatically in line with prices. In common with everyone else, those over 65 can withdraw funds from any ISAs they have tax free. Consequently, this does not affect their entitlement to age-related personal allowances.

Secondary information