Exemptions and reliefs from income tax
Exemptions and reliefs from income tax

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Exemptions and reliefs from income tax
  • Personal allowances
  • The personal allowance
  • Personal allowances for arrivers
  • Blind person's allowance
  • Married couple's allowance—available to civil partners
  • Starting rate for savings
  • Personal savings allowance
  • Dividend allowance
  • Exemptions from income tax on income
  • More...

For income tax rates and allowances applicable in the current tax year, see Practice Note: Key UK tax rates, thresholds and allowances for Private Client.

Personal allowances

The following income tax allowances are available to individuals:

  1. personal allowance

  2. transferable personal allowance

  3. blind person's allowance

  4. married couple's allowance

  5. personal savings allowance

  6. dividend allowance

  7. property income allowance

  8. trading income allowance

The personal allowance, blind person's allowance, personal savings allowance, dividend allowance, property income allowance and trading income allowance are each deducted from net income to obtain the taxpayer's taxable income. This means that a certain amount of income is tax-free each year. The married couple's allowance (which includes civil partners) is given by way of a 10% reduction of tax.

The personal allowance, the blind person’s allowance and the married couple’s allowance can be transferred to the taxpayer's spouse or civil partner in certain circumstances.

The personal allowance

The amount of the personal allowance depends on the taxpayer's total income in the tax year.

Since 6 April 2016, all individuals are entitled to the same personal allowance regardless of their date of birth. For details of the historical levels of personal allowance and the current personal allowance, see Practice Note: Key UK tax rates, thresholds and allowances for Private Client.

The personal allowance is currently available to all UK taxpayers (including children) except for those who are non-UK domiciled and claim the remittance basis

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