Definition of personal allowance

Individuals who are resident in the UK are entitled to a personal allowance; i.e. a tax-exempt band. Increased allowances are available for some people over the age of 65, and there is also a blind person’s allowance for the visually impaired. The personal allowance gradually reduces to nil as an individual’s taxable income rises beyond £100,000.

See also marriage /transferable allowance [1]

 

personal allowance in the UK in the news

In the UK Summer Budget 2015 speech, the chancellor increased the tax-free personal allowance in income tax to £11,000 a year by 2016/17 and said in future, it would always rise in line with the national minimum wage. The higher rate 40p tax threshold will also be raised to £43,000. [2]