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 income'1 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 income'1 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 Allowance | 12,570 |
| Marriage Allowance | 1,260 |
| Blind person's allowance | 2,600 |
Married couple's allowance Either partner born before 6 April 1935 | |
| - Maximum reduction in tax bill | 941.50 |
| - Minimum reduction in tax bill | 364.00 |
Married couple's allowance income limit Reduce married couple's allowance by £1 for every £2 of 'adjusted net income' above this limit | 31,400 |
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 income'1 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 income'1 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 Allowance | 12,570 |
| Marriage Allowance | 1,260 |
| Blind person's allowance | 2,520 |
Married couple's allowance Either partner born before 6 April 1935 | |
| - Maximum reduction in tax bill | 912.50 |
| - Minimum reduction in tax bill | 353.00 |
Married couple's allowance income limit Reduce married couple's allowance by £1 for every £2 of 'adjusted net income' above this limit | 30,400 |
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.