Glossary · UK
What is Personal Allowance?
The amount of income you can earn each tax year before paying any income tax.
Full Definition
The Personal Allowance is the amount of income you can earn each tax year before paying any UK Income Tax. For 2025/26 the standard Personal Allowance is £12,570. It applies UK-wide, including Scotland (even though Scotland sets its own tax rates above the allowance). The allowance is reduced by £1 for every £2 of income above £100,000, falling to zero at £125,140 — this creates an effective 60% marginal tax rate in the £100k–£125,140 band. Some people get a higher Personal Allowance (e.g. Blind Person's Allowance, Married Couple's Allowance for those born before 6 April 1935).
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.