At PBR, the level of the special age-related income tax allowances for 2007-08 was announced. These were increased in line with inflation to £7,550 for those aged 65-74 and £7,690 for those aged 75 and over. This year’s Budget announced that the age-related income tax allowances will rise by £1,180 above indexation in April 2008 and that by April 2011 no pensioner aged 75 or over will pay any tax until their income reaches £10,000 a year.