The UK Personal Allowance 2016/17

(Last updated 06/04/16)

£11,000

Personal Allowance

For every £2 earned over £100,000, the Personal Allowance goes down by £1. If you earn over £122,000 your Personal Allowance will be zero.

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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 2016/17. 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: £11,000

Her taxable profit is:

£30,432 - £11,000 = £19,432 taxable profit

Frances will only pay Income Tax on £19,432 of her earnings.

Previous Personal Allowance

Personal Allowance for people born after 6th April 1948

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

Previous income limits

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

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