Income tax allowances

The following table shows how much income you can earn that is exempt from income tax.

Personal allowance(1)N/AN/AN/AN/A
Personal Allowance for people born after 5 April 1948(1)9,44010,00010,60011,000
Income limit for Personal Allowance100,000100,000100,000100,000
Personal allowance: 65 to 74(1)(2)N/AN/AN/AN/A
Personal Allowance for people born between 6 April 1938 and 5 April 1948(1)(2)10,50010,50010,60011,000
Personal allowance: 75 and over(1)(2)N/AN/AN/AN/A
Personal Allowance for people before 6 April 1938(1)(2)10,66010,66010,66011,000
Married Couple's Allowance (born before 6th April 1935 and aged 75 and over)(2)(3)7,9158,1658,3558,355
Income limit for age-related allowancesN/AN/AN/AN/A
Income limit for the allowances for those born before 6 April 194826,10027,00027,70027,700
Minimum amount of married couple's allowance3,0403,1403,2203,220
Blind person's allowance2,1602,2302,2902,290


(1) The Personal Allowance reduces where the income is above £100,000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth.

(2) These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. This applies until the level of the personal allowance for those aged under 65, or from 2013-14, for those born after 5 April 1948, is reached. For married couples allowance this applies until it reaches the minimum amount.

(3) Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.

The following table shows the current income tax rates for 2013/2014, 2014/2015, 2015/2016 and 2016/2017.

Starting rate for savings: 10%*£0-£2,790£0-£2,880£0-£5,000£0-£5,000
Basic rate: 20%£0-£32,010£0-£31,865£0-£31,785£0-£32,000
Higher rate: 40%£32,011-£150,000£31,866-£150,000£31,786-£150,000£32,001-£150,000
Additional rate:50%N/AN/AN/AN/A
45% from 6 April 2013Over £150,000Over £150,000Over £150,000Over £150,000


* The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.

The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent (the dividend additional rate is 37.5 per cent from 2013-14).

Digita - Thomson Reuters
Digita - Thomson Reuters