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Income tax — Personal allowances

Allowances 2018/19 2017/18
Personal allowance 1, 2 £11,850 £11,500
Married couple’s allowances
Transferrable allowance 3 £1,185 £1,150
Age related allowance 4, 5
- maximum amount £8,695 £8,445
- minimum amount £3,360 £3,260
  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of age or date of birth, this allowance is reduced by £1 for every £2 of income over £100,000, until completely withdrawn, leading to a marginal tax rate of 60% on income in the band from £100,000 to £123,700.
  2. The personal allowance will increase to £12,500 by April 2020.
  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 £28,900 (2017/18 — £28,000) subject to the minimum allowance. The married couple’s allowance is reduced after the personal allowance.