Last updated 06/04/24

The UK Personal Allowance for 2024/25

The UK Personal Allowance for 2024/25
Personal Allowance
For every £2 earned over £100,000, the Personal Allowance goes down by £1.

The Personal Allowance: what you need to know

The Personal Allowance is the amount of income each individual is entitled to receive free of tax each year. The basic Personal Allowance for the tax year 2024/25 is £12,570.

If you earn more than £100,000 during the tax year, HMRC will reduce your Personal Allowance by £1 for every £2 earned over £100,000.

Example: how to use the Personal Allowance to calculate taxable profit

A self-employed photographer is completing their Self Assessment return for 2024/25. They need to know two things in order to work out how much of their profit they have to pay Income Tax on:

  • Their total profit for the year: £30,432
  • The Personal Allowance: £12,570 for most taxpayers

Their taxable profit is:

£30,432 - £12,570 = £17,862 taxable profit

They will only pay Income Tax on £17,862 of their earnings.

Previous Personal Allowance rates

Previous Personal Allowances for people born after 6th April 1948:

2024-25 £12,570
2023-24 £12,570
2022-23 £12,570
2021-22 £12,570
2020-21 £12,500

Previous income limits

2024-25 £100,000
2023-24 £100,000
2022-23 £100,000
2021-22 £100,000
2020-21 £100,000

Disclaimer: The content included on this page is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included on this page. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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