The UK Personal Allowance 2017/18

(Last updated 06/04/17)

£11,500

Personal Allowance

For every £2 earned over £100,000, the Personal Allowance goes down by £1.

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What is the Personal Allowance?

The Personal Allowance is the amount of income each individual is entitled to receive free of tax each year. Find out more about the Personal Allowance on our accounting glossary.

Example: How Frances uses her Personal Allowance to calculate her taxable profit

Frances is a self-employed photographer who is completing her Self Assessment return for 2017/18. She needs to know two things in order to work out how much of her profit she has to pay Income Tax on:

  • Her total profit for the year: £30,432
  • The Personal Allowance: £11,500

Her taxable profit is:

£30,432 - £11,500 = £18,932 taxable profit

Frances will only pay Income Tax on £18,932 of her earnings.

Previous Personal Allowance

Personal Allowance for people born after 6th April 1948

2017-18 £11,500
2016-17 £11,000
2015-16 £10,600
2014-15 £10,000
2013-14 £9,440
2012-13 £8,105

Previous income limits

2017-18 £100,000
2016-17 £100,000
2015-16 £100,000
2014-15 £100,000
2013-14 £100,000
2012-13 £100,000

The UK’s tax system is changing! Get your free guide to Making Tax Digital to find out how it will impact you. →