Personal allowance

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Personal allowance

The Personal Allowance is the amount of income that can be received each tax year before Income Tax is payable.

For most individuals it is set at a standard level, but it is reduced by £1 for every £2 of adjusted net income over £100,000 and may be higher for those eligible for certain allowances.

Once income exceeds the Personal Allowance, any additional income is taxed at the appropriate rates depending on the type and level of income.

Select Tax Category:

2023/2024	2024/2025	2025/2026	2026/2027
Personal allowance (Note 1)	£12,570	£12,570	£12,570	£12,570
Income limit for personal allowance (Note 2)	£100,000	£100,000	£100,000	£100,000

1. The personal allowance is frozen until 5 April 2031, after which it will increase in line with inflation.

2. The personal allowance is reduced by £1 for every £2 of income above the relevant income threshold.

Married couple's/civil partnership allowance (Note 1)	2023/2024	2024/2025	2025/2026	2026/2027
Maximum	£10,375	£11,080	£11,270	£11,700
Minimum amount	£4,010	£4,280	£4,360	£4,530
Income limit for married couples/civil partnership allowance	£34,600	£37,000	£37,700	£39,200

Marriage allowance (Note 2)	£1,260	£1,260	£1,260	£1,260

1. Married Couple’s Allowance (MCA) - A tax relief of 10% is available where at least one spouse or civil partner was born before 6 April 1935.

2. Transferable allowance rules - The allowance can be transferred between spouses or civil partners, but only where neither partner pays income tax above the basic rate. The Marriage Allowance and the Married Couple’s Allowance cannot be claimed at the same time.

Other allowances	2023/2024	2024/2025	2025/2026	2026/2027
Blind person's allowance	£2,870	£3,070	£3,130	£3,250
Trading allowance	£1,000	£1,000	£1,000	£1,000
Property allowance	£1,000	£1,000	£1,000	£1,000