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Income tax — Personal allowances

Allowances 2020/21 2019/20
Personal allowance 1, 2 £12,500 £12,500
Married couple’s allowances
Transferrable allowance 3 £1,250 £1,250
Age related allowance 4, 5
- maximum amount £9,075 £8,915
- minimum amount £3,510 £3,450
  1. Irrespective of age or date of birth, this allowance is reduced by £1 for every £2 of income over £100,000, until completely withdrawn, leading to a marginal tax rate of 60% on income in the band from £100,000 to £125,000.
  2. The personal allowance has been frozen at £12,500 for 2020/21, thereafter, increases will be indexed in line with the Consumer Price Index.
  3. A spouse or civil partner is entitled to transfer up to 10% of their personal allowance to their spouse or civil partner, provided neither partner is a higher or additional rate taxpayer, and neither was born before 6 April 1935.
  4. Available to those born before 6 April 1935.
  5. Tax relief for this allowance is restricted to 10% and the allowance is reduced by £1 for every £2 of income over £30,200 (2019/20 — £29,600) subject to the minimum allowance. The married couple’s allowance is reduced after the personal allowance.