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.