Check Your Income Tax Allowances

Income tax allowances

2014-15 2015-16 Change
£ a year
Personal Allowance
those born after 5 April 1948 10,000 10,600 600
those born between 6 April 1938 and 5 April 1948 10,500 10,600 100
those born before 6 April 1938 10,660 10,660
Income limit for personal allowance (*1) 100,000 100,000
Income limit for personal allowances (born before 6 April 1948) (*2) 27,000 27,700 700
Married couple’s allowance (*3)
maximum amount (*4) 8,165 8,355 190
minimum amount (*5) 3,140 3,220 80
Blind person’s allowance 2,230 2,290 60
Transferable Tax Allowance for married couples and civil partners (*6) 1,060

 

*1 The personal allowance reduces where the individual’s income is above this limit by £1 for every £2 above the limit. This applies regardless of the individual’s date of birth.
*2 This allowance reduces where the individual’s income is above the income limit by £1 for every £2 above the income limit until it reaches the level of the personal allowance for someone born after 5 April 1948.
*3 Available to people born before 6 April 1935. Tax relief for this allowance is restricted to 10 per cent.
*4 This allowance is reduced when the individual’s income is above the income limit. This is at a rate of £1 for every £2 above the income limit until it reaches the minimum amount. Any reduction in the married couple’s allowance applies after any reduction to the individual’s personal allowance.
*5 This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.
*6 Available to spouses/ civil partners born after 5 April 1935. This allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/ civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.