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Glossary · Tax

Personal Allowance

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By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: The amount of income you can earn before paying Income Tax — £12,570 for 2026/27, frozen until April 2031.

Tapered above £100,000 of adjusted net income by £1 for every £2, disappearing completely at £125,140 (the '60% trap'). Different rules apply to non-residents. The allowance is the same across the UK.

Primary source: gov.uk/income-tax-rates

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