In this section:
- Introduction to tax allowances and reliefs
- Personal Allowance
- Blind Person's Allowance
- Married Couple's Allowance
- Maintenance Payments Relief
- Tax allowances and reliefs - employees or directors
- How to get allowances and reliefs - employees or directors
- Tax allowances and reliefs if you're self-employed
- Tax relief on pension contributions
Personal Allowance
Nearly everyone who lives in the UK is entitled to an Income Tax Personal Allowance. This is the amount of income you can receive each year without having to pay tax on it. Depending on your circumstances, you may also be able to claim certain other allowances.
Levels of Personal Allowance
The amount of your personal allowance depends on:
- your age
- your total income in the tax year if you are 65 or over
Total income means everything you receive from all taxable sources. That means you need to include things like pensions and interest on your savings in a building society before the tax has been taken off.
| Personal Allowance | 2008-09 tax year | Income limit - see note |
|---|---|---|
| Basic rate | £6,035 | none |
| Age 65-74 | £9,030 | £21,800 |
| Age 75 and over | £9,180 | £21,800 |
If you become 65 or 75 during the year to 5 April 2009, you are entitled to the allowance for that age group.
Note: If your income is over the income limit, we reduce the age-related allowance by half of the amount - £1 for every £2 - you have over that limit, until the basic rate allowance is reached. You'll always get the basic allowance, whatever the level of your income.
So if, for example, you're 66 and have an income of £22,300 - £500 over the limit - we would reduce your age-related allowance by £250 to £8,780.
How do you get the Personal Allowance?
If you already pay tax through your job or pension, or if you complete a Self Assessment tax return, you should receive a Personal Allowance automatically. If for any reason you are not receiving a Personal Allowance and you think you should be, please contact HMRC and we can check your entitlement with you. In order to get the age-related Personal Allowance you need to complete form P161 Pension Enquiry. Follow the link below to find out when and how you receive this.
Find out why it’s important to complete form P161 Pension Enquiry
If you think you've paid too much tax
If you want to claim a tax refund because you didn't use your Personal Allowance, or for any other reason, you need to do so no later than 31 January five years after the end of the tax year (5 April) in which you overpaid tax. For example, a claim for the tax year 2002-03 which ended on 5 April 2003 must be made by 31 January 2009.
Get form R40 to claim for a repayment of tax
Get Help notes for claiming a repayment of tax (PDF 186K)
More about claiming back tax you've overpaid
Who can't get the Personal Allowance?
You can't claim the Personal Allowance if you are non-UK domiciled and claim the special 'remittance' basis of tax - whereby you only pay tax on income you bring into the UK. If you think this applies to you, please contact us.
Other allowances you may be able to get
Blind Person's Allowance
If you're certified blind and are on a local authority register of blind persons, or if you live in Scotland or Northern Ireland and you are unable to perform any work for which eyesight is essential, you can claim Blind Person's Allowance.
If you're married or in a civil partnership and can't use all your allowance, you can give the unused part to your spouse or civil partner. Even if you have no taxable income, it might be still worth claiming Blind Person's Allowance as your spouse or civil partner could benefit from your allowance.
More about Blind Person's Allowance
Married Couple's Allowance (MCA) - available to civil partners
You need to be a taxpayer to claim this allowance, because it's deducted from your tax bill but it is possible to transfer the allowance to your spouse or civil partner.
You can claim Married Couple's Allowance (MCA) if:
- you're married or in a civil partnership
- you're a taxpayer
- you or your spouse or civil partner were born before 6 April 1935
Married Couple's Allowance - learn more
Giving to charity - effect on your allowances
If you pay tax and give money to a UK charity or Community Amateur Sports Club (CASC) using Gift Aid, it's important to let us know as this has the effect of increasing the amount of tax-free income and related tax allowances you can receive. Find out more by reading our guide on Gift Aid.
Tax relief when giving to charity through Gift Aid
More useful links
More about other allowances you may be able to get
Check Income Tax rates and allowances
Do you have to pay tax in retirement?
