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Taxation: Pensioners

Volume 462: debated on Thursday 28 June 2007

To ask the Chancellor of the Exchequer what recent representations he has received on the reform of taxation for older people on low incomes; if he will commission further research on the matter; and if he will make a statement. (146257)

The Government have received a number of representations on this subject following the reforms to personal taxation announced in this year's Budget. For older people, the Budget announced that the age-related income tax allowances for those aged 65 or over and 75 or over will rise by £1,180 above indexation in April 2008. By April 2011 no pensioner aged 75 or over will pay any tax until their income reaches £10,000 a year. These reforms will remove 580,000 pensioners from paying tax in April 2008.