Brian O'Shea
Question:462 Mr. O'Shea asked the Minister for Finance the action he will take in regard to the effect of individualisation on taxpaying pensioners (details supplied); and if he will make a statement on the matter. [30572/00]
Vol. 529 No. 1
462 Mr. O'Shea asked the Minister for Finance the action he will take in regard to the effect of individualisation on taxpaying pensioners (details supplied); and if he will make a statement on the matter. [30572/00]
Pensioners will, of course, benefit from the general increases in the tax allowances/credits announced in the budget, that is, the doubling of the PAYE allowance to £2,000 and the £1,600 increase in the married personal allowance to £11,000. In addition couples aged over 65 have an age allowance of £1,600. In the recent budget I increased the tax exemption limits for a married couple aged 65 or over to £17,000 – £327 per week – which compares favourably to the general exemption limit of £8,200 for couples under 65. The net effect of the improvements is that couples over 65 with one pension who are within the normal tax allowance system do not pay any tax on income up to £280 per week.