Most people have a Personal Allowance – an annual amount of tax-free income. The rates of Income Tax you pay depend on how much taxable income you have above your allowance.
Income Tax Personal Allowances
|Personal Allowance||2015 – 2016 Tax Year|
|Age 65 to 74 – Personal Allowance||£10,500|
|Age 75 and over – Personal Allowance||£10,660|
If you are born before 1948
If your income is between £26,100 and £100,000 in the 2013 to 2014 tax year, your Personal Allowance goes down by £1 for every £2 of income above £26,100, to a minimum Personal Allowance of £9,440.
You may also be able to claim Married Couple’s Allowance.
Income over £100,000
For every £2 your income is above £100,000, your Personal Allowance goes down by £1. If your income is high enough, this can reduce your Personal Allowance to zero.
Blind Person’s Allowance
You may be able to claim Blind Person’s Allowance.
|Tax Year||Blind Person’s Allowance|
|2015 to 2016||£2,290|
|2014 to 2015||£2,230|
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