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Income tax — Personal allowances

Allowances 2019/20 2018/19
Personal allowance 1, 2 £12,500 £11,850
Married couple’s allowances
Transferrable allowance 3 £1,250 £1,190
Age related allowance 4, 5
- maximum amount £8,915 £8,695
- minimum amount £3,450 £3,360
  1. Irrespective of age or date of birth, this allowance is reduced by £1 for every £2 of income over £100,000, until completely withdrawn, leading to a marginal tax rate of 60% on income in the band from £100,000 to £125,000 (2018/19 — £100,000 to £123,700).
  2. The personal allowance will be frozen at £12,500 for the next tax year, 2020/21. Thereafter increases will be indexed in line with the Consumer Price Index.
  3. A spouse or civil partner is entitled to transfer up to 10% of their personal allowance to their spouse or civil partner, provided neither partner is a higher or additional rate taxpayer, and neither was born before 6 April 1935.
  4. Available to those born before 6 April 1935.
  5. Tax relief for this allowance is restricted to 10% and the allowance is reduced by £1 for every £2 of income over £29,600 (2018/19 — £28,900) subject to the minimum allowance. The married couple’s allowance is reduced after the personal allowance.