Investments and Age Allowance

updated: January 6, 2012

To obtain a copy of our Guide: Investments and Age Allowance please click here.

This is a potential tax saving opportunity of which everyone age 65 or over – or perhaps fast approaching this age - should at least be aware.  Thousands of retired people are paying an effective top rate of tax of 30% on their income.  In most cases, they are unaware of it.

We are not talking about those who are sufficiently well off in retirement to be termed ‘higher rate taxpayers’, ie paying a top rate of tax of 40%.  Rather, these are ordinary folk who, as a result perhaps of having been in a good occupational pension scheme, will have a total income in excess of £24,000.

The reason for this odd, but punitive, effective rate of tax, is that the person concerned has lost part, or all, of something that they may not have realised they had - their age allowance.

To obtain further information please click here for our pdf Guide to Investments and Age Allowance.