Tax Allowance

What is a Tax Allowance?

  • The personal allowance or tax allowance is the amount of income on which you do not pay any income tax.
  • Income tax is payable on taxable income exceeding the tax allowances.
  • Personal allowance increases when you are claiming marriage allowance or blind person's allowance.
  • It decreases when your taxable income exceeds £100,000. 
  • Individuals earning more than £125,140 don't receive any personal allowance.
  • Unused personal allowance cannot be carried backwards or forwards to a different tax year.
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