Also from April 2013, people over 65 years of age will not get an enhanced personal income tax allowance, known as the age allowance.

This will involve either freezing income tax allowances or putting up VAT.

Employers' social security contributions were reduced by 4.3 per cent from Jan. 1, 1993, and income tax allowances were reduced.

You do this by completing form 575 Notice of transfer of surplus Income Tax allowance.

He said that he wanted to find some "modest additional revenue" from CGT to pay for increasing the income tax allowance.

Full list of people who get Income Tax allowances (PDF 559K)

It helps us decide your residence treatment for income and capital gains tax purposes; give you correct income tax allowances and, if relevant, review your domicile position.

Mr Clegg highlighted achievements already made by the Liberal Democrats in Government, including the raising of the income tax allowance and the pupil premium in schools.

In taxation, the agreement committed to increasing the personal income tax allowance to £10,000 by 2015 to take many of those on the lowest salaries out of the tax system.

Rises in petrol and road tax, a leap in duties on drink and tobacco and the freezing of income tax allowances are probably on the agenda for next spring's Budget.

The main problem over income tax allowances derives from the failure of married couples, where only one person is working, to take advantage of the flexibility available since the advent of separate taxation in the 1990/91 tax year.

Since the income is not taxable it also does not count for age-related personal income tax allowance reduction, making ISAs useful for those aged 65 or over with incomes approaching £22,900, who could otherwise lose personal allowance.

While the United States income tax allowance for children has grown since 1984, together with an expanded earned income tax credit, of the eight nations Mr. Smeeding studied, only the United States does not have a refundable income tax credit or a universal child allowance.

The ideas have come thick and fast - a basic tax at 12p in the pound with the abolition of all income tax allowances, a flexible school-leaving age between 14 and 18 so 14-year-olds would have the option of leaving for a job in which training is guaranteed, and the reintroduction of child tax allowances.

Whereas the value of income tax allowances have been protected through an automatic uprating process which parliament wrote into law by parliament back in the 1970s, MPs have shown less concern for benefit claimants than wage earners, and have mandated the work and pensions secretary merely to "have regard for prices" in setting benefit rates.