Personal allowance definition

Personal allowance is the amount of income a person can receive without being taxed.

Personal allowance definition

Personal allowance is the amount of income a person can receive without being taxed.

In the UK, personal allowance is the threshold above which income tax is levied on your income. Any income earned up to the personal allowance level is untaxed, no matter how much you earn. Individual circumstances may have an effect on the size of your personal allowance, however.

In addition to your personal allowance, UK residents can also get relief on income tax by using tax wrappers, such as an ISA or a SIPP. These products allow you to invest up to a certain limit with various levels of relief from income tax.

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