Sorry AI R but as I understand it your tax code statement for over 65s is not completely correct.
Plse see .gov web site.
Personal Allowance for people aged 65-74 = £10,500 But see note 2
The age related allowance limit is £24500.
1.From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
2. These allowances reduce where the income is above the income limit for age-related allowances by £1 for every £2 of income above the limit. For the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
So if you are prudent enough to have planned for retirement and have pensions say of £31000p/a
Then 31000 - 24500 = 6500, divide that by 2 =3250
Subtract that from £10,500 - 3250 = 7250 which is less than the current personal allowance so you personnel allowance will be £8105
So if your combined pension are above £29290 the higher personnel allowance does not apply to you.
Additionally this allowance is being removed over the next few years
Please correct me if i have it wrong but thats how it is applied to me.
Rdgs ***