Exemptions and reliefs from income tax


Published by a UUÂãÁÄÖ±²¥ Private Client expert
Practice notes

Exemptions and reliefs from income tax


Published by a UUÂãÁÄÖ±²¥ Private Client expert

Practice notes
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For income tax rates and allowances applicable in the current tax year, see Practice Note: Key UK tax rates, thresholds and allowances for Private client.

personal allowances

The following income tax allowances are available to individuals:

  1. •

    personal allowance

  2. •

    transferable personal allowance

  3. •

    blind person's allowance

  4. •

    married couple's allowance

  5. •

    personal savings allowance

  6. •

    dividend allowance

  7. •

    property income allowance

  8. •

    trading income allowance

The personal allowance, blind person's allowance, personal savings allowance, dividend allowance, property income allowance and trading income allowance are each deducted from net income to obtain the taxpayer's taxable income. This means that a certain amount of income is tax-free each year. The married couple's allowance (which includes civil partners) is given by way of a 10% reduction of tax.

The personal allowance, the blind person’s allowance and the married couple’s allowance can be transferred to the taxpayer's spouse or civil partner in certain circumstances.

The personal allowance

The amount of the personal allowance depends on the taxpayer's total income in the tax year.

Since 6 April 2016,

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