PTP TR-Personal allowance not being given for clients with an income over £100,000

Article ID

kba-03019

Article Name

PTP TR-Personal allowance not being given for clients with an income over £100,000

Created Date

10th January 2012

Product

Problem

When running a calculation for a client with income in excess of £100,000, personal allowance is not being given.

Resolution

From tax year 2011-12 and onwards, if the adjusted net income is over £100,000, the Personal Allowance is reduced by half of the amount – £1 for every £2 –  over that limit. If the income is large enough, the Personal Allowance will be reduced to nil. This £100,000 limit applies irrespective of age.