personal allowances
Certain fixed sums that are deductible from total income in calculating the taxable income of an individual before income tax is imposed. The main personal allowance is available to all individuals resident in the UK, and to certain non-resident individuals (Income Tax Act 2007 ss 35–37). The allowance is increased for those born before 6 April 1938 and on low income (s 37) and reduced if income exceeds a certain level (s 35(2)). There is an additional allowance for married persons on low income born before 6 April 1935. There is also a blind person’s allowance. The value of the personal allowances increases each year by the increase in the retail prices index, unless the Finance Act specifies a different amount. Personal allowances are not available to trustees or personal representatives. |