Allows someone to earn a certain amount of money tax-free. Note: an allowance and relief isn’t the same thing.
- Personal Allowance - You can earn up to £12,570 tax-free every year
- Trading Allowance - Earning <£1,000 of gross self-employed income
- Marriage Allowance - Available to anyone with a spouse /civil partner. A lower earner can transfer their personal allowance to the higher earner as long as one partner earns less than £12,570 and the other earns less than £50,270
- Property Income Allowance - When running a buy-to-let property business, your first £1,000 is tax-free
- Rent a room Scheme - Live-in-landlords enable the first £7,500 of income to be tax free
- Capital Gains Tax Allowance - Those selling assets will pay tax on profits, the allowance enables you to earn up to £12,300 tax-free