Personal Tax Allowance 2024/25 – All You need to Know about Personal Tax Allowance in UK?

If you live in United Kingdom, few tax benefits that lower your required income tax payment is there for you. I go over the tax allowances that might be eligible, but keep in mind that not all of them operate the same way. Some, like the married couple’s allowance and the marriage allowance, provide an amount (a tax credit) that can lower the amount of income tax you pay. Others lower the amount of income that you have to pay taxes on.

Now i will share latest updates on Personal Tax Allowance 2024/25, What is it and How Much is Personal Tax Allowance UK? so keep reading. As it was in the prior tax year, the personal allowance is scheduled to stay the same. The basic and higher rate tax band thresholds will also remain unchanged. The additional rate taxpayer threshold, however, will drop from Pound 150,000 to Pound 125,140. Should your income surpass the threshold for higher rates, you will have to begin paying taxes at an earlier age.

Personal Tax Allowance 2024/25

If you a resident of Britain, then i want to tell you that everyone here has something called a Personal Allowance, including students. This is the maximum amount of money you can make in a given tax year before you have to begin paying income tax. The Personal Allowance for the 2023–2024 tax year is Pound 12,570 and you generally won’t be required to pay any income tax if your income is less than this.

If you receive Blind Person’s Allowance or Marital Allowance, your Personal Allowance may increase. In addition, it could be lower if you have outstanding taxes from a prior tax year or if you are a high earner. The Pound 12,570 will be lowered by Pound 1 for each Pound 2 over the Pound 100,000 threshold if you earn more than Pound 100,000 per year. If you make Pound 125,000, there is no tax-free allowance and income tax is payable on everything.

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Britain’s Personal Tax Allowance 2024/25 Details

GovernmentUnited Kingdom Government
Name of OrganizationHMRC
AimTo reduce taxable income
Personal Tax Allowance AmountPound 12,570 per year
CategoryFinance News
PTA- Maximum CapPound 100,000

What is Personal Tax Allowance in United Kingdom?

A tax allowance known as the personal allowance is available to the majority of UK residents. The amount of taxable income that you must pay taxes on is decreased by the personal allowance. Even taxable income that is not subject to taxation due to personal allowances is still subject to taxation.

If you deduct the personal allowance from your income, you might not be required to pay tax on the portion of your income that is not taxed. To know more about Personal Tax Allowance in United Kingdom read this page from top to bottom.

Personal Tax Allowance 2024/25 - All You need to Know about Personal Tax Allowance in UK?

Britain Income tax rates 2023/24

  • Personal Allowance: 0% tax on earnings up to Pound 12,570
  • Basic Rate: 20% tax on earnings between Pound 12,571 and Pound 50,270
  • Higher Rate: 40% tax on earnings between Pound 50,271 and Pound 125,139
  • Additional Rate: 45% tax on earnings over Pound 125,140

UK’s Personal Tax Allowance for current year

I want to update you for the 2023–2024 tax year, the tax-free Personal Allowance is Pound 12,570. The United Kingdom Government currently anticipates maintaining the same personal allowance of Pound 12,570 until April 2026, so it is the same as the tax year 2022–2023.

You are exempt from income tax on earnings up to the Pound 12,570 threshold thanks to the Pound 12570 personal allowance. All income above the threshold is subject to ay as you Earn taxation at the rates that apply to your income level. The tax year 2023–2024 begins on April 6, 2023, and ends on April 5, 2024.

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Personal Tax Allowance 2023-24 Should I pay any Income Tax?

A person’s Personal Allowance is lowered by Pound 1 for every Pound 2 he/she makes over the threshold, up to Pound 0, if his/her income is higher than the threshold. The Marriage Allowance is paid to he/she as a tax bill reduction of 20%.

In contrast, the Age Allowance and Personal Allowance are subtracted from his/her taxable income prior to the calculation of tax. Most forms of income are subject to income tax. The most popular method is using your pay and salary from your job. However, income tax is also due on:

  • Earnings, if you are a business owner
  • Dividends and interest from investments and savings
  • Rent that a landlord receives.

Normally, only a portion of a person’s taxable income is subject to income tax. This is due to the fact that most people are eligible for multiple allowances. He/she can earn an allowance, or a certain amount of otherwise taxable income, each year without having to pay taxes on it.

Personal AllowancePound 12,570Pound 12,570
Income threshold for Personal AllowancePound 100,000Pound 100,000
Marriage AllowancePound 1,260Pound 1,260
Personal Savings AllowancePound 1,000 / Pound 500 / Pound 0Pound 1,000 / Pound 500 / Pound 0
Dividend Tax AllowancePound 1,000Pound 2,000
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