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The personal allowance is a deduction against net income that is available to all UK resident individuals (and some non-residents, see below). The basic personal allowance for 2023/24 and 2022/23 is £12,570. The personal allowance is frozen at £12,570 until 5 April 2028.

Where an individual’s net income exceeds £100,000, the personal allowance is reduced by £1 for every £2 of income above £100,000.

A husband and wife / civil partners are treated as separate persons and so each is entitled to a personal allowance to set against their own personal income. Where one spouse / civil partner is working and the other is not, both personal allowances can be utilised by the transfer of income-producing assets to the non-worker. See the Utilising allowances and lower rate bands guidance note for more details.

From 6 April 2015, an individual is able to ‘transfer’ 10% of the personal allowance (£1,260) to the spouse / civil partner, who receives a tax reduction of 20% of this amount. In