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‘ 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‘ 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
– Minumum reduction in tax bill 353.00
Married couples’s allowance income limit

Reduce married couple’s allowance by £1 for every £2 of ‘adjusted net income’ above this limit

30,400

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 ‘ 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’ 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 12,500
Marriage Allowance 1,250
Blind person’s allowance 2,500
Married couple’s allowance

Either partner born before 6 April 1935

– Maximum reduction in tax bill 907.50
– Minumum reduction in tax bill 351.00
Married couples’s allowance income limit

Reduce married couple’s allowance by £1 for every £2 of ‘adjusted net income’ above this limit

30,200
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