(Except clauses 3, 5, 6, 15, 21, 49, 90 and 117 and new clauses amending section 74 of the Finance Act 2003) - Clause 2
Finance Bill

Jane Kennedy (Financial Secretary, HM Treasury; Liverpool, Wavertree, Labour)

I welcome you to the Committee, Mr. Cook. I was on the point of making a final response to the hon. Member for Runnymede and Weybridge. He asked two detailed questions on the clawback for the higher amounts of personal allowances for individuals aged 65 and above, and at what points the higher amounts of personal allowances were taken away. He was also looking for a signpost to where the measures could be found.

The income limit for the taper for higher amounts of personal allowance for individuals aged 65 and above is subject to an annual statutory increase by indexation, as is provided by paragraph 57(1)(h) of the Income Tax Act 2007—hon. Members can see that I have the detail. For 2007-08, the limit is £20,900, as set in the Income Tax (Indexation) (No.2) Order 2006, and for 2008-09, the limit is £21,800.

On the hon. Gentleman’s second question, for 2008-09, the points at which the higher personal allowance for individuals is tapered away is £28,990 for individuals aged 65 to 74, and £29,290 for individuals aged 75 and over. If further details are admitted, I would be more than happy to return to the matter, and certainly to write to the Committee when it has had time to consider Hansard.