Income Tax Allowances

A personal allowance gives an individual an annual amount of income free from income tax.

Income above the personal allowances is subject to income tax.

The personal allowance will be reduced if an individual's 'adjusted net income1' is above £100,000. The allowance is reduced by £1 for every £2 of income above £100,000.

An individual born before 6 April 1935 may be entitled to a married couple's allowance but this is reduced if 'adjusted net income1' is above the married couple's allowance income limit (see table below).

Marriage allowance - 10% of the personal allowance may be transferable between certain spouses where neither pays tax above the basic rate. The Marriage allowance is not available to couples entitled to the Married Couple's allowance.

Income tax personal allowances£
Personal Allowance12,500
Marriage Allowance1,250
Blind person's allowance2,500
Married couple's allowance 
Either partner born before 6 April 1935
 
- Maximum reduction in tax bill907.50
- Minimum reduction in tax bill351.10
Married couple's allowance income limit
Reduce married couple's allowance by £1 for every £2 of 'adjusted net income1' above this limit
30,200

1 Adjusted net income: Adjusted net income is total taxable income less certain tax reliefs, for example:

  • trading losses
  • donations made to charities through Gift Aid
  • pension contributions.

 

A personal allowance gives an individual an annual amount of income free from income tax.

Income above the personal allowances is subject to income tax.

The personal allowance will be reduced if an individual's ' adjusted net income1' is above £100,000. The allowance is reduced by £1 for every £2 of income above £100,000.

An individual born before 6 April 1935 may be entitled to a married couple's allowance but this is reduced if 'adjusted net income1' is above the married couple's allowance income limit (see table below).

Marriage allowance - 10% of the personal allowance may be transferable between certain spouses where neither pays tax above the basic rate. The Marriage allowance is not available to couples entitled to the Married Couple's allowance.

Income tax personal allowances£
Personal Allowance12,500
Marriage Allowance1,250
Blind person's allowance2,450
Married couple's allowance 
Either partner born before 6 April 1935
 
- Maximum reduction in tax bill891.50
- Minimum reduction in tax bill345.00
Married couple's allowance income limit 
Reduce married couple's allowance by £1 for every £2 of ' adjusted net income1' above this limit
29,600

1 Adjusted net income: Adjusted net income is total taxable income less certain tax reliefs, for example:

  • trading losses
  • donations made to charities through Gift Aid
  • pension contributions.