Personal Allowance

[ˈpɜːsᵊnᵊl əˈlaʊəns]

Term

Summary:

Personal Allowance is the amount of tax-free income given to individuals in the UK. The standard amount for 2023/24 is £12,570 but can vary for certain people.

More detail:

The Personal Allowance is a tax-free allowance given to individuals in the United Kingdom. It is the amount of their income that is exempt from Income Tax.

For the 2023/24 tax year, the standard Personal Allowance is £12,570. However, if an individual earns over £100,000, their personal allowance reduces by £1 for every £2 they earn over £100,000. Thus, an individual who earns over £125,140 gets no Personal Allowance.

Any changes to the Personal Allowance is announced in the Autumn Statement.

If people claim Marriage Allowance or Blind Person’s Allowance, their Personal Allowance can be larger than the standard.

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