What tax allowances am I entitled to?
In this section, we look at tax allowances and what you may be entitled to.
What are tax allowances?
Most tax allowances work by reducing your taxable income to reduce the amount of income tax you pay. This means that you can have a certain amount of taxable income each year, tax free.
You only pay income tax on taxable income that is above your tax allowances.
We explain who is eligible for UK tax allowances in the tax basics section.
The personal allowance is a tax allowance that is available to most people who are resident in the UK. It reduces the amount of taxable income on which you pay tax.
There is more information on the basic personal allowance, including an example, in our tax basics section.
Blind person's allowance (BPA) reduces the amount of taxable income that you have to pay tax on. If you are eligible for BPA, you are entitled to it in addition to the personal allowance
There is more information on BPA including the eligibility criteria in the tax basics section.
The married couple's allowance (MCA) does not reduce the amount of taxable income on which you pay tax. It is used to calculate an amount to reduce your tax bill instead.
There is more information on MCA including examples in the pensioners section.
You can find information on the relief for maintenance payments in our tax basics section.
We are often asked if married couples or civil partners can transfer their tax allowances to their spouse or partner if they do not use them. Some allowances are transferable, but others are not.
You can only transfer some of the personal allowance or the age-related personal allowance to your spouse or civil partner, if you meet certain conditions. This is known as the transferable tax allowance for married couples and civil partners or 'marriage allowance'. Note that this is not an extra allowance – it is part of the personal allowance.
There is more information about the marriage allowance in the tax basics section.
For information on how marriage or civil partnership separation affects your tax allowances, look at our tax basics section.
Other allowances – trading allowance and property income allowance
If you have income from running a small business, or untaxed casual/miscellaneous income, you may be entitled to the trading allowance of up to £1,000. This is in addition to any other tax allowances you are eligible for. Read about the trading allowance in more detail in our section What is the trading allowance?.
If you have income from property, including income from renting out a driveway or garage, for example, you may be entitled to the property allowance of up to £1,000. This is in addition to any other tax allowances you are eligible for (but not rent a room relief). Read about the property allowance in more detail in our section How does the property allowance work?.
If you have some trading income and some property income you may be able to claim both allowances if you meet the criteria for each individual allowance.
For more information on tax allowances, you may find the following section of this website helpful:
- There is more information, including examples, on the personal allowance in the tax basics section;
- There is more information, including examples, on the marriage allowance in the tax basics section;
- There is more information, including examples, on the BPA, in the tax basics section;
- If you want more information including examples on MCA you can find this in the pensioners section;
- You can check which allowances are included in your Notice of Coding by looking at your online Personal Tax Account that you can read about in our tax basics section.