Every individual is entitled to a personal allowance, which is the amount of income you can earn before paying income tax.
The main allowances and rates are shown below, but please note that there are different tax rates in Scotland and Wales has been able to set its own rates from April 2019.
Make an enquiry| Main personal allowances and reliefs | 2023/2024 | 2024/25 |
|---|---|---|
| Personal allowance | £12,570 | £12,570 |
| Personal allowance reduced by £1 for each £2 income over: | £100,000 | £100,000 |
| Married/civil partner’s allowance (given at 10%) | £1,260 | £1,260 |
| – Max (only applies where at least one partner was born before 6/4/1935) | £10,375 | £11,080 |
| – Min (only applies where at least one partner was born before 6/4/1935) | £4,010 | £4,280 |
| Married/Civil partner’s allowance reduced by £1 for every £2 income over: | £34,600 | £37,000 |
| Blind person’s allowance | £2,870 | £3,070 |
| Trading allowance | £1,000 | £1,000 |
| Property allowance | £1,000 | £1,000 |
| Rent a Room tax-free amount | £7,500 | £7,500 |
Tax is paid on the amount of taxable income remaining after allowances have been deducted at the following rates:
| Rates | 2023/24 | 2024/25 |
|---|---|---|
| Basic-rate of 20% income up to: | £37,700 | £37,700 |
| Higher-rate of 40% on income over the basic rate up to: | £125,140 | £125,140 |
| Additional-rate of 45% on income over: | £125,140 | £125,140 |
| Starting rate of 0% on savings income up to*: | £5,000 | £5,000 |
*Only available if the non-savings income requirements are met
There is also a £1,000 dividend allowance (a 0% rate). After this amount, dividends are taxed at 8.75% for basic-rate tax payers, 33.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers.
In addition, the personal savings allowance lets you earn up to £1,000 interest (£500 if you are a higher-rate taxpayer) in savings, with no income tax to pay.
Please note that these are the basic rates and allowances, but there can be further provisions available to help you, and the application of all of them can be complex.
Our experts will guide you through the allowances and how to claim them, ensuring that you do not overpay your income tax. We can also advise on what happens in particular situations, such as what will happen in a year that you divorce or separate.
