Calling it "a major simplification", the Chancellor announced plans to freeze the value of age-related tax allowances in order to bring these in line with the personal allowance - the income you can receive before you start paying any income tax. Pensions are more likely to call it "a major raid".
From 6 April 2013 existing age-related allowances will be frozen at their 2012–13 levels: £10,500 for those born between 6 April 1938 and 5 April 1948, and £10,660 for those born before 6 April 1938. Once they are aligned with the personal allowance, age-related allowances will be removed altogether.
From April 2013, age-related allowances will no longer be available, except to those born on or before 5 April 1948. The higher age-related allowance will only be available to those born before 6 April 1938. The government claims this will simplify the tax system and reduce the number of pensioners in self assessment but it will also line government coffers with an expected £3.3 billion.