Personal allowance

You pay income tax on earnings in excess of your personal allowance which depends on your age and income:

2018-19 2017-18
£ £
All individuals 11,850 11,500
Income limit for personal allowance (1)  100,000 100,000
Married couple’s allowance (2)
maximum (3) 8,695 8,445
minimum (4) 3,360 3,260
Blind person’s allowance 2,390 2,320
Transferable Tax Allowance for married couples and civil partners (5)  1,190 1,150

Notes

1. Personal allowance is reduced by £1 for every £2 exceeding £100,000 of “adjusted net income”. This is irrespective of age or date of birth.

2. Available to people born before 6 April 1935. Tax relief for this allowance is restricted to 10%.

3. 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.

4. This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.

5. 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.