- Age-related personal allowances
- Married Couple's Allowance
- Tax and pensioners living abroad
- Taxable and non-taxable benefits
Age-related personal allowances
When you reach 65, you may get an age-related personal allowance. This allowance increases when you reach 75.
A personal allowance is the amount of income you can receive without having to pay tax. Everyone with an income gets a personal allowance. However, if you are aged 65 or over, as long as your income is below a certain limit, your tax-free allowance will be more generous. Your income could include pensions, salary and interest on savings.
It doesn't matter what age you are. If your income is more than your allowance, you will have to pay income tax.
You do not have to claim the personal allowance - you should get it automatically. Your tax office will know your date of birth if you have filled in a tax return or a claim form. If you have not done this and you are 65 or over, you should tell your tax office your date of birth.
Married Couple's Allowance
If you're married and either you or your husband or wife were born before 6 April 1935, you can claim Married Couple's Allowance.
Married Couple's Allowance reduces the amount of income tax a married couple has to pay. The amount you get depends on your ages and the husband's total income from all sources. This allowance is given in terms of tax.
If you or your husband or wife are not getting the allowance and you think you may be eligible, contact your tax office.
Tax and living abroad
Phone +44 (0)151 210 2222
If you're a pensioner and you go to live abroad, you will still have to pay UK tax on your income from the UK. But you may be entitled to claim a personal allowance. If you go to live in a country that has a double taxation agreement with the UK, you may be able to pay less tax.
Double taxation agreements can mean that if you are living abroad you may pay less income tax in the UK. How much in tax you will have to pay will depend on your personal circumstances.
You can get a wide range of leaflets on income tax from HM Revenue & Customs. You may find leaflet IR121 Income tax and pensioners especially useful.
You can also get copies of this leaflet by phoning the Inland Revenue leaflet order line on 0845 9000 404 between 8.00am and 10.00pm seven days a week (closed on Christmas Day).
If you live abroad, visit the Centre for Non-Residents website or phone +44 (0)151 210 2222. The line is open 7.30am to 5.00pm, Monday to Friday.
Taxable and non-taxable benefits
Benefits you will pay tax on:
- State Pension
- Occupational pension
- Carer's Allowance (previously known as Invalid Care Allowance)
Benefits you will not pay tax on:
- Pension Credit
- Housing Benefit and Council Tax Benefit
- Budgeting Loans
- Crisis Loans
- Community Care Grant
- Attendance Allowance
- War Disablement Pension or War Widow(er)'s Pension
- Winter Fuel Payments
- Cold Weather Payments
- Disabled Facilities Grant and help with home repairs and improvements given by local authorities
- Funeral Payments
- Bereavement Payments
- Child Benefit
- Child Tax Credit
- Working Tax Credit