Tax year 2026/27 (6 April 2026 to 5 April 2027)
Everyone in the UK is given an amount of income they can receive each tax year before Income Tax is charged. This is called the Personal Allowance. Certain factors can lead to it being increased or reduced.
If your income is over £100,000 a year, your Personal Allowance is reduced by £1 for every £2 of income above that limit. Once your income reaches £125,140, you have no Personal Allowance at all.
The income used for this test is your adjusted net income: broadly, your total taxable income less certain deductions such as personal pension contributions and Gift Aid donations. Those deductions can therefore help keep your allowance.
Example: if your adjusted net income is £110,000, you are £10,000 over the limit, so your allowance is reduced by £5,000, leaving £7,570.
Your allowance can be increased by Blind Person’s Allowance, and reduced if you transfer part of it to your spouse or civil partner under Marriage Allowance. Both have their own tabs on this page.
Separately, employees can often claim flat rate amounts for work expenses such as uniforms, work clothing and tools, which reduce the income that is taxed. HMRC lists these by occupation: see job expenses for uniforms, work clothing and tools.
| Personal Allowance | £12,570 |
| Income limit before the allowance starts to reduce | £100,000 |
| Income at which the allowance is lost completely | £125,140 |
This is not a full set of rates and allowances. For anything not shown here, see HMRC’s Income Tax rates and allowances.
Tax year 2026/27 (6 April 2026 to 5 April 2027)
If you are married or in a civil partnership and one of you does not use all of their Personal Allowance, that partner can transfer part of it to the other. This is called Marriage Allowance. It can reduce the tax you pay as a couple.
All of the following must apply:
If the receiving partner lives in Scotland, they must pay at the starter, basic or intermediate rate, which usually means income between £12,571 and £43,662. Which rates apply depends on where you live.
The partner giving the allowance may pay a little more tax themselves, but the couple usually pays less overall. If either of you was born before 6 April 1935, Married Couple’s Allowance may be worth more: see Married Couple’s Allowance.
| Amount that can be transferred | £1,260 |
| Maximum tax saving for the receiving partner | £252 |
To apply, see how to apply for Marriage Allowance.
This is not a full set of rates and allowances. For anything not shown here, see HMRC’s Marriage Allowance guidance.
Tax year 2026/27 (6 April 2026 to 5 April 2027)
If you are blind or severely sight impaired, you can receive an extra amount of income before tax is charged. This is Blind Person’s Allowance, and it is added to your Personal Allowance.
In England and Wales, you can claim if you are registered with your local council as blind or severely sight impaired, and you have a certificate (or similar document from your doctor) confirming this.
In Scotland and Northern Ireland the test is different: you can claim if you cannot do work for which eyesight is essential. Which test applies depends on where you live.
If you cannot use all of the allowance, you can transfer the unused part to your spouse or civil partner, whether or not they are blind. The allowance is not given automatically: you claim it from HMRC.
| Blind Person’s Allowance | £3,250 |
This is not a full set of rates and allowances. For anything not shown here, see HMRC’s Blind Person’s Allowance guidance.
Tax year 2026/27 (6 April 2026 to 5 April 2027)
Most people can receive some interest on their savings without paying tax on it. Up to three allowances can apply, one after the other: any unused Personal Allowance, the starting rate for savings, and the Personal Savings Allowance. How much of each you get depends on your other income.
Interest from ISAs and some National Savings products is tax-free and does not use these allowances.
Starting rate for savings. Up to £5,000 of interest can be tax-free, but this is reduced by £1 for every £1 of your other income (such as wages or pension) above your Personal Allowance. Once your other income reaches £17,570, it is gone.
Example: with other income of £15,000, you are £2,430 above the Personal Allowance, so £2,570 of the starting rate remains.
Personal Savings Allowance. On top of that, you can have some interest tax-free depending on your tax band. To work out your band, add your interest to your other income.
| Starting rate for savings (0%) | up to £5,000 |
| Personal Savings Allowance: basic rate taxpayer | £1,000 |
| Personal Savings Allowance: higher rate taxpayer | £500 |
| Personal Savings Allowance: additional rate taxpayer | £0 |
This is not a full set of rates and allowances. For anything not shown here, see HMRC’s guidance on tax on savings interest.
Tax year 2026/27 (6 April 2026 to 5 April 2027)
If you own shares, including in your own company, you can receive some dividend income each year without paying tax on it. This is the Dividend Allowance. Dividends that fall within any unused Personal Allowance are also tax-free.
Dividends within the allowance still count towards your income when working out your tax band.
Dividends above the allowance are taxed at a rate that depends on your tax band. The basic and higher rates rose by 2 percentage points from 6 April 2026, which matters to company directors who pay themselves in dividends.
Example: if your other income uses your Personal Allowance and leaves you in the basic rate band, and you receive £2,000 of dividends, the first £500 is tax-free and the remaining £1,500 is taxed at 10.75%, which is £161.25.
| Dividend Allowance | £500 |
| Basic rate on dividends above the allowance | 10.75% |
| Higher rate on dividends above the allowance | 35.75% |
| Additional rate on dividends above the allowance | 39.35% |
This is not a full set of rates and allowances. For anything not shown here, see HMRC’s guidance on tax on dividends.